Network Adjustment Policy and Procedures
The Network
Adjustment is a product offered by CO-OP Shared Branching whereby faulty
transactions can be adjusted from the acquiring institution (the service
center) to the issuing institution (the host credit union). The process begins
with a request from the acquirer to the Network Office, which in turn generates
the adjustment. The adjustment will settle all funds between the acquirers
account and the issuing credit unions settlement account. An adjustment
conducted in this manner will generate all appropriate settlement reports with
Next Generation Network (NGN), EFD or Fiserv EFT, depending upon the data
switch for the acquirer and issuer.
All adjustment
requests fall into one of three categories, each of which requires different
supporting documentation. The three adjustment types are as follows:
An Offline Transaction
Adjustment A transaction that is conducted for a member when either the host
credit union is unable to process the transaction or the service center is
unable to process the transaction. Typically, the teller manually writes a
receipt of the transaction detailing the type of transaction conducted. The
member for whom the transaction is conducted then signs this receipt.
Adjustments for offline transactions will be processed in accordance with the
timeframes outlined in the CO-OP Shared Branching Network Policies and Procedures
if the issuer/host system is not back online for processing.
A Return Item to
the acquiring location This is an instance where a check presented by a
member for either deposit or cashing is returned to the service center
location. The service center cannot process the check back to the member for
collection; therefore an adjustment request form is forwarded to the Network
Office where an adjustment can be processed against the members credit union.
Returned Item adjustments will be processed in accordance with the CO-OP Shared
Branching Network Policies and Procedures.
A Standard Adjustment
A standard adjustment encompasses all other adjustments not included in
either of the above-mentioned categories. This would include, but not be limited
to, transactions where a members account was affected but settlement did not
occur, where funds were either taken in or given out but settlement did not
occur, etc.
Once it is determined that an adjustment request is needed, an Adjustment
Request Form needs to be completed and forwarded to the CO-OP Shared Branching Network Office.
When completing an
adjustment request form, the following information is required on each request
form.
1. The Acquirers Routing & Transit Number This 10-digit number
identifies the acquiring location and can be found in the header section of NGN
acquirer reports.
2. The Issuing Credit
Unions ISO number This number is commonly referred to as the PAN number
of the credit union and can be obtained from the settlement report or other
source documents.
3. Original Transaction
Type A transaction type will need to be checked describing what type of
transaction is being adjusted. It is important that only one box is checked per
adjustment request.
4. Request Reason
The reason the adjustment request is being made. Only one box should be checked
per adjustment request; a return item, an offline transaction or standard
adjustment request.
5. Notes Whenever
requesting a standard adjustment, a brief explanation as to why the adjustment
is needed must accompany the request. If the request is to reverse a previous
adjustment, please note such.
6. Local Term Date
This is the date on which the original transaction occurred at the outlet or
service center..
7. Local Term Time
This is the time, in military format, when the original transaction occurred.
8. Settled Amount
This represents the amount, in dollars, that actually settled through the
network switch(es). This
amount is reflected in all reports and should balance back to any and all
corporate statements.
9. Member Account Number
The member account number for which the transaction was completed. If the
sub-account number or suffix is available, include it with the account number
as well. (i.e. the number(s) or letter(s) designating
the share, share draft or loan account, etc).
10. Sequence/Trace Number
This is the sequence number assigned to the transaction by the teller
platform at the service center/outlet location. There will be no report to
reflect offline transactions as the transactions did not settle through the
switch. Offline adjustment requests should be completed with 123456 as the
sequence/trace number.
11. Local Terminal ID
This is the ID of the teller workstation where the transaction was conducted.
This can be obtained from a switch settlement report or other source documents.
12. Local Address
The street address of the service center/outlet location where the transaction
occurred.
13. Local City/State
The city name and state abbreviation of the service center/outlet location.
14. New Amount This
represents the amount, in dollars, that should have settled through the network
switch(es). This amount did
not settle but should have. There may or may not be any reports or support
documentation showing this amount. It may, in some cases, appear on a report
but have an accompanying error message along with it.
15. Requested By
The name of the individual completing the adjustment request form.
16. Request Date
The date when the adjustment request form is being completed.
17. Contact Phone
The phone number of the individual completing the adjustment request form. If
this person has a direct extension, please include it with the phone number.
18. Contact Fax The
fax number of the individual completing the adjustment request form.
Once an
adjustment request form is completed, it should be faxed to CO-OP Shared
Branching at (206) 337-1302. (This will be the only manner in which
the Network Office will accept an adjustment request form. Adjustments received
by 2:00pm ET will be reviewed on the day received. Adjustments received after
2:00pm ET will be reviewed the following business day). The fax must
include all supporting documentation, as outlined for the particular adjustment
type (return item, offline or standard).
The following chart outlines the
support documentation needed with each adjustment type.
|
Offline
|
A completed adjustment request form
A copy of the offline receipt signed by the member
|
|
Return
Item
|
A completed adjustment request form
A copy of the returned item, both front and back
A copy of the daily settlement report (NGN Report #103)
Notify and return the original item directly to the issuing/host credit union
in accordance with timeframes and requirements outlined in the Network
Policies and Procedures
|
|
Standard
Adjustment
|
A completed adjustment request form
A copy of the daily settlement report (NGN Report #103)
|
If an adjustment
request form is faxed to the Network office without the proper supporting
documentation, the adjustment will be returned to the requestor along with an
explanatory letter describing the errors or omissions. CO-OP Shared Branching
will not process adjustments that are incomplete or missing supporting
documentation. A new/complete request must be re-submitted in order for the
adjustment to be processed.
Reference
List for
Adjustment
Requests to CO-OP Shared Branching
Each Adjustment Request Form must
include the following support documentation for each adjustment type:
Offline
Transaction
Completed Adjustment Request form
Copy of signed Offline receipt
Return Item
Adjustment
Completed Adjustment Request form
Copy of Return Item (front and back)
Copy of Settlement Report showing
transaction (NGN Report #103)
Notify and return the original item
directly to the issuing/host credit union in accordance with timeframes and
requirements outlined in the Network Policies and Procedures
Standard
Adjustment Request
Completed Adjustment Request form
Copy of Settlement Report showing
transaction
Please note ALL adjustment
requests must be faxed to CO-OP Shared Branching at
(206) 337-1302. Adjustments
received by 2:00pm ET will be reviewed on the day received. Adjustments
received after 2:00pm ET will be reviewed the following business day.
Each adjustment request form must
be filled out in its entirety before the CO-OP Shared Branching office will
begin to input the adjustment. CO-OP Shared Branching will not process
adjustments that are incomplete or missing supporting documentation. A
new/complete request must be re-submitted in order for the adjustment to be
processed.
- Revised 03/31/08