Returns

Column allows customers to programmatically return checks issued at Column. Checks deposited at Column cannot be returned by Column customers — they can only be returned at the issuing bank.

Issued Check Returns

Checks are returned for a variety of reasons, most commonly for insufficient funds in the payer's account. Column requires customers to prefund an account prior to issuing checks, thus preventing NSF returns. For most return reasons, a BOFD may attempt to re-clear the check. If re-cleared by the BOFD, the check can be returned a second time. Thus, a single check transfer can have multiple returns associated with it.

User Initiated Returns

A check payer has the ability to initiate a check return after the check has successfully cleared (in settled status) if the check was not authorized (return reason Q) or is suspected counterfeit (return reason N). Column will hold returned funds for 2 days to allow for dishonored returns (check adjustments). After 2 days, Column will release funds to the account from which the check was issued.

Column Auto-Returns

Column will automatically return checks for a number of reasons including check number not found, positive-pay mismatch, and account number not found. Column will also automatically return checks that have stop payment instructions.

Deposited Check Returns

Checks deposited at Column can be returned by the issuing bank. If a check is returned with return reason A (NSF) or return reason B (UCF - Uncollected Funds Hold), Column will automatically attempt to reclear the check. If a reclear attempt succeeds, Column will mark a check settled. If a reclear attempt fails, Column will mark a check returned. For all other return codes, Column will immediately mark a check returned without a reclear attempt.

Valid Return Codes

Code

Description

NSF - Not sufficient funds

UCF - Uncollected funds hold

Stop payment

Closed account

UTLA - Unable to locate account

Frozen account - account has restrictions placed on it by either the customer or bank

Stale dated

Post dated

Endorsement missing

Endorsement irregular

Signature missing

Signature irregular - suspected forgery

Non-cash item

Altered/fictitious item - suspected counterfeit

Unable to process such that critical payment information is missing

Item exceeds stated max value

Not authorized

Branch or account sold

Refer to maker

Item cannot be re-presented (exceeds number of allowable times the item can be presented)

Unusable image - image could not be used for required business purpose

Cannot determine amount - amount cannot be verified

Refer to image - return reason information is contained within the image of the item

Duplicate presentment. Supporting documentation shall be readily available

Forgery - an affidavit shall be available upon request

Notifications and States

When a check transfer is returned, Column creates a check return object. Check return objects do not have webhooks, as events are mapped to those on the check transfer object. Below are the states a check return object may go through.

Stage

Description

Scheduled

For incoming debits (checks issued by Column), a return has been user initiated or received from the BOFD. The check transfer is in a pending return state. For outgoing debits (checks deposited at Column), the check transfer is in a deposited or settled state.

Processed

An incoming debit (check issued by Column) has been returned by Column or an outgoing debit (check deposited at Column) has been returned by the issuing bank. The check transfer is in a returned state.