ACH SERVICES STOP PAYMENT/DELETION, REVERSAL AND RECLAIM REQUEST REFERENCE GUIDE

ACH SERVICES STOP PAYMENT/DELETION, REVERSAL AND RECLAIM REQUEST REFERENCE GUIDE Date: May 2006

Table of Contents Overview... 3 Stop Payment/Deletion... 3 Reversal... 3 Reclaim... 3 Stop Payment/Deletion Request... 4 Request Time Frames... 4 Late Requests... 4 Reversal Requests... 5 Request Time Frames... 5 Reclaim Requests... 5 Request Time Frames... 5 Request Type Quick Reference Guide... 6 Request Form... 6 Frequently Asked Questions... 7 Sample Stop Payment/Deletion or Reversal Advice... 10 Instructions to Complete Request Form... 11 STOP PAYMENT/DELETION, REVERSAL, RECLAIM REQUEST... 12 2

Overview This reference guide provides procedures for correcting either a debit or a credit transaction that was erroneously generated by the ACH Originator. The type of request for correction (Stop Payment/Deletion, Reversal or Reclaim) will depend upon the processing state of the erroneous transaction, the type of transaction (either a debit or a credit), as well as the status of the Receiver. Stop Payment/Deletion credit transactions only A Stop Payment/Deletion request is initiated by the Originator to JPMorgan Chase for a credit transaction that has been transmitted to JPMorgan Chase, but has not yet been released to the ACH network for further distribution to the Receiving Depository Financial Institution (RDFI) for posting to the Receiver s account. In this situation, the credit transaction is still in the JPMorgan Chase ACH payment engine. JPMorgan Chase does not support a stop/delete for an ACH debit transaction. Follow the procedure below to initiate a Debit Reversal. Reversal A Reversal request is initiated by the Originator to JPMorgan Chase for a debit or a credit transaction that has been transmitted to JPMorgan Chase and JPMorgan Chase has released the transaction to the ACH network for further distribution to the RDFI for posting to the Receiver s account. In many cases the transaction may have already posted to the Receiver s account. Reclaim A Reclaim request is a special type of Reversal request. It is used to correct a consumer credit transaction for pension, annuity or other benefit payments when the Receiver of the credit transaction is deceased. 3

Stop Payment/Deletion Request Request Time Frames The time frames for a Stop Payment/Deletion request will depend upon when the Originator transmitted the ACH file containing the transaction. Origination File Received by JPMorgan Chase If the Originator or the Originator s processor has sent the ACH Origination file to JPMorgan Chase more than two (2) banking days prior to the effective date, the following guideline is to be used: JPMorgan generally releases credit transactions two banking days before the effective date so that the RDFI can receive and post the payments in a timely manner in accordance with applicable ACH delivery schedules. A Stop Payment/Deletion request for a credit transaction should be received two (2) banking days prior to the effective date. Origination File Not Received by JPMorgan Chase If the Originator or the Originator s processor has not yet sent the ACH Origination file to JPMorgan Chase for further processing, the following guideline is to be used: The Stop Payment/Deletion request must be sent and received by the JPMorgan Chase production team prior to the receipt of the ACH Origination file that contains the credit transaction that is to be stopped/deleted. Late Requests An attempt will be made to stop/delete a transaction if a Stop Payment/Deletion request is received on the same day the ACH file is received for processing by JPMorgan Chase or is otherwise received outside the time frames identified above. If such attempt is not successful, JPMorgan Chase will use the Stop Payment/Deletion request instruction to generate a Reversal request. 4

Reversal Requests Request Time Frames A Reversal is an ACH transaction that relates to the original ACH item (either a debit or a credit) and has the word REVERSAL on the transaction. Under the National Automated Clearing House Association (NACHA) Operating Rules, a Reversal must be originated within five banking days from the effective date of the original transaction. A Reversal request can only be initiated for those ACH transactions that are originated through JPMorgan Chase ACH. JPMorgan Chase will create the Reversal transaction and deliver it to the ACH network for further delivery to the RDFI, or to the applicable internal systems for JPMorgan Chase accounts. For Credit Reversals, the RDFI may attempt to process a debit to the individual s account, but may not be able to reverse the entry. The effort may fail if there are insufficient funds in the individual s account, the account is blocked or closed, or for various other reasons. As such, a Credit Reversal transaction initiated by JPMorgan Chase, on behalf of the Originator, may be unsuccessful. Reclaim Requests Request Time Frames The time frames that are identified for a Reversal request also apply to a Reclaim request. The primary difference between a Reversal transaction and a Reclaim transaction is that a Reclaim can be used only when the Receiver of one or more pension, annuity or other benefit payments is deceased. An RDFI receiving a Reclaim entry is required to honor it if there are sufficient funds in the deceased Receiver s account. If the account is blocked, closed, or otherwise inaccessible, the Reclaim may be returned by the RDFI. 5

Request Type Quick Reference Guide The following table serves as a guide to assist in determining the request type to be used to correct an erroneous ACH transaction. IF THE ORIGINAL ITEM: THEN REQUEST A: REVERSAL RECLAIM STOP IS A DEBIT OR A CREDIT TRANSACTION AND IS RELEASED AND RECEIVER IS NOT DECEASED X IS A CREDIT TRANSACTION FOR BENEFIT PAYMENTS, IS RELEASED AND RECEIVER IS DECEASED X IS A CREDIT TRANSACTION AND IS RECEIVED AT LEAST TWO BANKING DAYS PRIOR TO EFFECTIVE DATE OR IS A CREDIT TRANSACTION AND IS GOING TO A JPMORGAN CHASE ACCOUNT AND IS RECEIVED AT LEAST ONE BANKING DAY PRIOR TO THE EFFECTIVE DATE IS A CREDIT TRANSACTION AND NOT BEEN RECEIVED BY THE JPMORGAN CHASE ACH SYSTEM AND THE REQUEST IS RECEIVED PRIOR TO THE RECEIPT OF THE FILE IS A CREDIT TRANSACTION AND IS RECEIVED ON THE SAME DAY AS THE STOP/DELETE INSTRUCTION, AN ATTEMPT WILL BE MADE TO EFFECT THE STOP/DELETE X X X Request Form A single form is used to correct an erroneous debit or credit entry, with a section used to identify the request type (Stop Payment/Deletion, Reversal or Reclaim). The JPMorgan Chase Stop Payment/Deletion, Reversal, Reclaim Request form is to be completed in its entirety and submitted via fax to the JPMorgan Chase ACH Production Operations team at 1-866-217-6935. Ten minutes after completion of the document facsimile transmission, a call should be placed to the JPMorgan Chase Production Operations team at 1-813-432-3750 to confirm successful receipt. Note: JPMorgan Chase s Stop Payment/Deletion, Reversal, Reclaim Request form is used to reverse debit or credit entries. It is important that the information contained on this form be correct. Please refer to instructions on page 11 to properly complete the form. 6

Frequently Asked Questions Q1 What is the difference between a Stop Payment/Deletion, a Reversal and a Reclaim? Α Stop Payment/Deletion: A Stop Payment/Deletion may be used to prevent a credit entry from being delivered by JPMorgan Chase to the ACH network. Therefore, the entry must still be at JPMorgan Chase and cannot have been released to the ACH network. Reversal: A Reversal must be originated within five banking days of the effective date of the original entry to correct a duplicate or erroneous debit or credit transaction sent out in error. Reclaim: A Reclaim must be originated within five banking days after the Originator receives notice of the Receiver s death and is to be used only to recover pension, annuity or other benefits payments made after death. Q2 When should a Reversal/Reclaim be used? Α If JPMorgan Chase has released the erroneous transaction, you will be unable to perform a Stop Payment/Deletion and therefore should initiate a Reversal/Reclaim. A Reversal must be initiated within five banking days of the erroneous debit or credit transaction. A Reclaim can only be processed for erroneous credit transactions and must be initiated within five banking days after you are made aware of the death of the Receiver. Q3 A large number of Reversals/Reclaims need to be processed, is there an easier way? Α You should be able to generate your own Reversal file on your system. If you need any assistance in generating the Reversal file, please contact the JPMorgan Transmission Help Desk at 1-813-432-3800 for file specifications. Q4 Can JPMorgan Chase guarantee that a Reversal/Reclaim will be successful? Α No. The Operating Rules of the National Automated Clearing House Association (NACHA) provide that the Receiving Depository Financial Institution (RDFI) may accept Reversals/Reclaims without a prenotification. However, the RDFI may return them for any valid reason. As a matter of practice, many RDFI s do accept Reversals/Reclaims if there are sufficient funds in the Receiver s account and the account is not blocked, frozen or otherwise inaccessible. Q5 Who do I contact to place a Stop Payment/Deletion, Reversal, or Reclaim request? Α Please fax the completed Stop Payment/Deletion, Reversal, Reclaim Request form to 1-866-217-6935. Ten minutes are faxing contact the Stop Payment/Reversal clerk for confirmation of fax receipt at 1-813-432-3750. Q6 How do I find out my ACH Company ID number? Α Your ACH Company ID is also found at the top of any Return Items Report you receive. You may be able to obtain the ACH Company ID number from your systems or programming group and/or service bureau if you utilize one. If you are familiar with the ACH format, the ACH Company ID number is in the batch header record, positions 41-50. 7

Q7 What is an Individual ID Number? Α An individual identification number is normally the number used by your organization to identify to whom the payment is to be made. For example, in a payroll application many organizations use the employee s ID number as the Individual ID Number. To obtain how this number is assigned, contact your systems or programming group or service bureau. The value is located in the entry detail record (record starting with a number 6) in pos. 40;54. Α Here are a few examples of Individual ID # s and how they are formatted: If you utilize a service bureau, the Individual ID may be as follows: X6C000000012345. Customers not utilizing a service bureau will have their Individual ID # s formatted differently. For example, a Social Security number can be with or without dashes or have leading digits (the maximum number of digits is 15). Q8 When will the Reversal/Reclaim entry post into the Receiver s account? Α If you fax the reversal/reclaim on or after the original effective date, and RDFI is JPMC, the item will settle that day. If you fax the reversal/reclaim after the original effective date, and RDFI is not JPMC, the item will settle the next business day. Q9 How will I know if the Reversal/Reclaim entry has successfully posted when the entry is received by the RDFI? Α You may verify posting of a Reversal/Reclaim entry by contacting the Receiver s bank. Q10 When will I get notification that the Reversal/Reclaim or the Stop Payment/Deletion was processed? Α We will send you an advice the morning following the day we process the transaction for you. If necessary, please forward a copy of the advice memo to your Accounting, Treasury or Controller s Department for account reconciliation. If you use an Information Reporting service offered by JPMorgan Chase, you will see the Reversal at the end of the ACH Return Report. Any ACH transaction which was stopped/deleted will appear as an R08 PAYMENT STOPPED on the ACH Return Report. Q11 When will I receive credit to my Demand Deposit Account for a Credit Reversal? Α Reclaim or Reversal: You will receive provisional credit to your Demand Deposit Account (DDA) on the effective date. If the effective date you requested is in the past (stale dated), the credit to your DDA will be posted the next banking day. Note: As funds credited to your account for Reversal and Reclaim items are provisional, they are subject to receipt of final payment from the Receiving Depository Financial Institution. Stop Payment/Deletion: A credit to your DDA will be posted on the effective date. If you have other Returned Items on the same day, the credit will be included with your other returns. 8

Q12 How will I receive my Advice memo? Α We will send the Advice in the same manner we send you your Return Items Report. For example, if you receive your ACH Return Report via fax, you will receive the Advice for the Reversal by fax. Q13 How long before I receive my Advice memo? Α Advice memos are sent the morning following processing by JPMorgan Chase. If your Advice is sent by fax, you should receive the fax the morning of the next business day. If you receive your Advice via the U.S. Postal Service, please allow sufficient time for receipt. Q14 Why can my Demand Deposit Account be debited after I have received credit for a processed Reversal? A Funds credited to your account when a Reversal or Reclaim item is initiated are provisional and subject to the receipt of final payment from the Receiving Depository Financial Institution. Your DDA will be debited if the RDFI rejects the Reversal due to insufficient funds, frozen account, or other acceptable reject reasons. Q15 When can a request for Stop Payment/Deletion be placed? A Stop Payment/Deletion request must be received and placed prior to 4 p.m. ET, at least two banking days prior to the effective date to delete a credit transaction. JPMorgan Chase will endeavor to Stop Payment/Delete an item if received less than the required time frame. Q16 Why does JPMorgan Chase require two days advance notice to process Stop Payments/Deletions for ACH credit transactions? A JPMorgan Chase processes files immediately upon receipt so your original ACH credit transaction may have been processed by the time we receive your Stop Payment/Delete request. We will attempt to affect the stop/delete when we have less than two banking days notice prior to the effective date. 9

Sample Stop Payment/Deletion or Reversal Advice ACH SERVICES JPMorgan Chase Bank 10430 Highland Manor Dr. 2 nd Floor Tampa, FL 33610 ACH Customer Service, 1-813-432-3700 ATTN: PAYROLL AUDIT 614-111-2222 ACME COMPANY ONE ACME DRIVE COLUMBUS, OH XXXXX ADVICE DATE COMPANY NAME CO ID. COMPANY ACCT # $ AMOUNT CREDIT 09/18/06 ACME COMPANY 1234567890 09999777222 999.99 INDIVIDUAL NAME INDIVIDUAL ID INDIVIDUAL ACCT # ORIG ABA ACC TYPE MARY SMITH ###-##-#### 111222333444 123456789 CHECKING TYPE REQ ORIG. TRACE # SEC OR T/C DESCR DATE EFF DATE BATCH # CH TR# REVERSAL 005522222222222 PPD 22 091106 09/11/06 222222 6666666 NOTE: Funds credited to your account are provisional and subject to receipt Of final payment from the receiving depository financial institution End of Advice The report will show STOP or RECLAIM depending upon the type of advice Funds credited to your account for Stop Payments are final. 10

Instructions to Complete Request Form SECTION 1: Requestor and Company Information DATE: This is the date on which the request form is being submitted. REQUESTOR S NAME & TELEPHONE#: This is the name and telephone number of the person authorized to initiate this request. ACH COMPANY ID#: This is the way JPMorgan Chase identifies your organization as an originator. It is a nine or 10- character ACH Company ID that can be found on reports and advices you receive from the bank. It is also contained in the Company/Batch Header record of the original ACH transaction (ACH format Record 5, position 41-50). COMPANY NAME AND ADDRESS: Name and address of the company initiating this request. SECTION 2: Transaction Information RECEIVER/INDIVIDUAL S NAME: Name of the receiver or individual whose ACH transaction will be affected by your request. It can be found in the original ACH Entry Detail Record (ACH format Record 6, position 55-76) RECEIVER/INDIVIDUAL S ID#: Required Field This is how you have identified the receiver/individual in your system. For example, it may be a payroll ID number. It can also be found in the original ACH Entry Detail Record (ACH format Record 6, position 40 54). This ID number must match exactly to the original ACH transaction or the bank will not be able to stop/delete the transaction. RECEIVER/INDIVIDUAL S ROUTING (ABA #): This number is the Receiving Depository Financial Institution s number where the receiver/individual s account is held. The Routing Number is nine digits long and can be found in the original ACH Entry Detail Record (ACH format Record 6, position 4-12) RECEIVER/INDIVIDUAL S ACCOUNT #: This is the account number of the receiver/individual receiving the payment. The receiver/individual s account number can be found in the original ACH Entry Detail Record (ACH format Record 6, position 13-29) RECEIVER/INDIVIDUAL S PAY OR EFFECTIVE DATE: Required Field Please indicate the date the payment is/was due to the receiver/individual. The effective date can be found in the original ACH Company/Batch Header Record (ACH format Record 5, position 70-75). This ID number must match exactly to the original ACH transaction or the bank will not be able to stop/delete the transaction RECEIVER/INDIVIDUAL S ACCOUNT TYPE: Please check whether the receiver/individual s account is Checking or Savings. RECEIVER/INDIVIDUAL S $ AMOUNT: Required Field Enter the amount of the original payment. This ID number must match exactly to the original ACH transaction or the bank will not be able to stop/delete the transaction SECTION 3: Reason for Requested Action REQUEST TYPE: Select the appropriate type of instruction you are requesting. Please refer to the Request Type Quick Reference Guide table on page six. 11

JPMORGAN CHASE ACH SERVICES STOP PAYMENT/DELETION, REVERSAL, RECLAIM REQUEST Send via fax to: 1-866-217-6935 Please call 1-813-432-3750 to confirm fax receipt *Required Field Section 1: Requestor and Company Information DATE: REQUESTOR S NAME TEL#: ACH COMPANY ID#: (This is the way JPMorgan Chase identifies you as an originator. It is a 9 or 10 character ACH Company ID that can be found on reports and advices you receive. It can also be found in ACH format Record 5, position 41-50) COMPANY NAME: COMPANY ADDRESS: CITY: STATE: ZIP: Section 2: Transaction Information RECEIVER/INDIVIDUAL S NAME: *RECEIVER S/INDIVIDUAL S ID #: (This is how you have identified the receiver in your system. For example, it may be a payroll ID number.) *PAY/EFFECTIVE DATE: RECEIVER S ACCOUNT TYPE (check one): CHECKING SAVINGS *$ AMOUNT: RECEIVER/INDIVIDUAL S ROUTING (ABA #): ACCOUNT #: Section 3: Reason for Requested Action REQUEST TYPE (check one): CREDIT REVERSAL DEBIT REVERSAL STOP PAYMENT/DELETION (credit only) RECLAIM (deceased) Please note (for reversals and reclaims): Funds credited to your account are provisional and subject to receipt of final payment from the Receiving Depository Financial Institution (RDFI). If reversal, indicate reason for reversal (check appropriate box): The entry being reversed is a duplicate of an entry previously initiated by the Company. The entry being reversed ordered payment to or from a receiver not intended to be credited or debited by the Company. (For example, the transaction went to the wrong individual.) The entry being reversed ordered payment in a dollar amount different than was intended by the Company. (For example, the wrong amount was sent.) If Reclaim, please check box to certify that the entry is being reversed because the receiver is deceased and the receiver's right to receive the pension, annuity or other benefit payment represented by the entry terminated prior to receipt. Fax must be received by 4 p.m. ET for same-day processing.