What is an administrative return?

What is an administrative return?

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Title

What is an administrative return?

Summary

An ACH return is a credit or debit entry that is typically initiated by a Receiving Depository Financial Institution (RDFI) that returns a previously originated credit or debit entry to the Originating Depository Financial Institution (ODFI) within the time frames established by Nacha rules. More specifically, Administrative Returns occur on the debit entry. Here is a list of all possible ACH returns. Of this list, the following are administrative: R02, R03, R04

Dwolla monitors client return rates monthly to ensure they're within the acceptable limits. The return rate thresholds for Administrative Return Rate Threshold = 3%. This is calculated by the number of administrative debits returned divided by the number of debits initiated for the preceding 30 days.

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