Real-time Payments RTP Return Codes

Monitoring FedNow and Real-Time Payments (RTP) return codes for Payers and Payees in the context of "Request for Payments" involves tracking and addressing transaction returns efficiently. Here's a guide on how you can manage return codes for both Payers and Payees:

1. Organize Your Tracking System:

• Utilize a spreadsheet in Excel or Google Sheets to organize information.
• Create separate sheets or tabs for FedNow and RTP transactions, distinguishing between Payers and Payees.
• Include columns for essential details such as transaction ID, payment reference, amount, payer/payee details, status, and return codes.

2. Transaction Details:

• Include relevant details specific to FedNow and RTP transactions, such as FedNow transaction ID or RTP reference number.

3. Return Code Column:

• Add dedicated columns to record return codes associated with each transaction.
• Include an additional column for return code descriptions to provide context.

4. Status Indicators:

• Use status indicators to denote the current state of each transaction (e.g., Pending, Returned, Resolved).
• Utilize color-coded flags or symbols for quick visual identification.

5. Automatic Date Calculations:

• Utilize formulas to automatically calculate the aging of returned transactions based on the current date.

6. Conditional Formatting:

• Implement conditional formatting to visually highlight returned transactions and aging categories.
• Distinguish between Payers and Payees using different colors or formatting.

7. Immediate Notification:

• Set up immediate notifications to receive alerts when return codes are received from FedNow or RTP.
• Establish clear communication channels to ensure relevant stakeholders are informed promptly.

8. Analysis of Return Codes:

• Analyze each return code to understand the specific reason for the return.
• Consult the documentation provided by FedNow and RTP to interpret the return codes accurately.

9. Error Resolution Workflow:

• Develop a standardized workflow for handling returned transactions. This workflow should include:

• Investigation: Assign responsibilities to team members to investigate the details of the return.
• Correction: Correct the issues identified in the transaction that led to the return.
• Resubmission: If applicable, prepare the corrected data for resubmission to FedNow or RTP.

10. Communication with Banks:

• Establish clear communication channels with banks to resolve issues related to return codes.
• Seek additional information or clarification from banks if needed to address the return reasons effectively.

11. Data Cleaning Process:

• Initiate a data cleaning process to address issues identified by return codes. This may involve correcting data entries, updating information, or resolving discrepancies.

12. Documentation and Audit Trail:

• Document all actions taken to resolve return codes, including corrections made to the data.
• Maintain an audit trail to track changes and provide transparency in case of future inquiries or audits.

13. Syncing with QBO:

• If applicable, ensure that your spreadsheet data is synced with QuickBooks Online (QBO) after resolving return codes.
• Leverage QBO import tools or APIs to ensure accurate and timely data transfer.

14. Regular Reviews:

• Schedule periodic reviews to catch any discrepancies, errors, or overdue returned transactions.
• Verify that aging categories are updated accurately based on the current date.

15. Training and Awareness:

• Train relevant team members on the procedures for handling return codes and cleaning data.
• Foster awareness of the importance of data accuracy and compliance with banking and transaction standards.

By implementing these steps, you can establish a comprehensive and well-organized process for monitoring FedNow and RTP return codes for both Payers and Payees in Excel and Google Sheets. Regular reviews, documentation, and training are essential for maintaining accuracy and efficiency in your financial processes.