Legal

ACH Return Codes – What Are They and How They Work

For plenty of transactions, such as receiving a direct deposit of one’s paycheck or setting up automatic monthly bill pay, ACH payments are of incredible convenience.

However, when conducting business, there may be cases when a transaction fails to succeed. This is where ACH Return codes come into play.

ACH or automated clearing house return codes identify what went wrong with the transaction and why the recipient’s bank returned an ACH payment. In other words, ACH codes make it easy to communicate payment failures.

So let’s learn more about what ACH return codes exactly are and how they work. Keep on reading to make everything clear.

What Are ACH Return Codes?

ACH return codes are numbers that occur when an ACH payment can’t be completed. Every code begins with ‘R’ followed by a two-digit number.

For instance, ‘R10’ indicates that the originator is unknown or unauthorized to the Debit Receiver’s Account.

There is a number of reasons why the transactions fail, including:

Insufficient funds in the transaction account
The account number structure is not valid.
Bank account closed
A stop payment
Unauthorized debit to consumer account using Corporate SEC code

The ACH network, in response, returns payment to the originating party if a transaction fails to succeed. Payments returned in such a way are commonly referred to as ACH Returns.

Based on the nature of the problem, there are currently 85 distinct ACH return codes.

But the list is constantly changing and growing as NACHA, which governs the Automated Clearing House (ACH) network, regularly updates existing codes and adds new ones.

How Do ACH Return Codes Work?

As we’ve already mentioned, each return code begins with ‘R’ followed by a two-digit number.

And each two-digit number, in turn, represents a unique scenario. The rules for handling every return code are set by NACHA.

Two parties involved in an ACH transaction are the originator, referred to as the Originating Depository Financial Institution (ODFI), and the receiver, referred to as the Receiving Depository Financial Institution (RDFI).

These parties are responsible for handling ACH return codes according to the NACHA’s rules.

The process follows: the RDFI receives an ACH request sent by the ODFI, and it accepts or rejects it.

If rejected, the RDFI sends an ACH return to the ODFI with a reason code that describes the cause of the issue.

The whole procedure goes directly via the ACH operator, who processes all of the transactions between the originator and receiver.

Now, let’s proceed to the example. Let’s say the originator isn’t authorized to debit the client’s account with an ACH payment.

In that case, the customer’s bank has up to 60 days after settlement to return the payment to the company’s bank with the ACH return code R10.

Let’s take another example: a transaction cannot be processed as the recipient doesn’t have enough funds. In this scenario, the bank has up to 2 days after settlement to return the payment to the streaming service with the code R01.

What are ACH SEC Codes?

SEC, or Standard Entry Class codes, are three-letter codes that specify how an ACH payment was completed by the consumer or the business receiving the ACH payment.

Like ACH return codes, SEC codes are also defined and maintained by NACHA, which allows a maximum number of 13 SEC codes on ACH transactions. Being a part of the NACHA file format, they are attached to the ACH payment request.

Originating Depository Financial Institution or ODFI is responsible for including the proper SEC code in the ACH payment. Including the wrong one could lead to an ACH return.

Modern Treasury supports six SEC codes when originating payment orders. They are PPD, CCD, CTX, IAT, CIE, and WEB.

How Long Does an ACH Refund Process Take?

The process of ACH refunds proceeds rather quickly. Normally it takes about two banking days. However, the time frame for some particular ACH return codes may be longer.

With some codes, the refund period can last up to 60 banking days. For example, ACH return codes R05, R07, and R10 can take up to 60 calendar days to resolve.

Also, always clarify with your merchant service provider for more information regarding the expected timeline.

Can ACH Returns Be Disputed?

In case the transaction meets certain criteria, ACH returns can be disputed. One may dispute a return if:

As a result of the reversal, there was an unintended credit to the receiver
The transaction was a duplicate
The return didn’t appear within the proper time frames set by the NACHA
The transaction was misrouted
It included inaccurate information

As a typical turnaround time for ACH returns is two banking days, disputes must be resolved in a timely manner.

If they meet the above criteria, one will receive ACH returns within five banking days from the date of return settlement.

What is ACH Return Fee?

The same as with transaction processing fees, ACH returns also come with additional fees.

Depending on the particular ACH return code, the costs vary. In general, the costs range from $2 to $5 and are usually passed on to be paid by the consumer.

The Bottom Line

ACH Payments is a win-win option for many transactions.

Compared to hassle paper checks, they are faster and more convenient. Before adding ACH to your payment options, it is vital to familiarize yourself with ACH return codes.

An ACH transaction can fail to succeed due to many factors. Among the most common reasons are a closed bank account, a stop payment, an invalid account number structure, insufficient funds in the transaction account, etc.

ACH or automated clearing house return codes make it easy to communicate payment failures by identifying what went wrong with the transaction and why the recipient’s bank returned an ACH payment.

Knowing how the codes work will help you react when an ACH return occurs.

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Legal

Thai Court Amends Law to Allows Wives to Sue Husband’s Lovers

Thailand's Constitutional Court Allows Wives to Sue Husband's Lovers

Angry Thai Wife: File Image

Thailand’s Constitutional Court has changed the Civil Code will allow women to sue their husbands’ lovers, male or female. The Constitutional Court found on Tuesday that Section 1523 of the Civil Code breached Section 27 of the constitution, which safeguards Thais’ rights and liberties regardless of gender.

The court directed that the verdict be enforced within 360 days.

Section 1523 of the Civil Code states that husbands can sue their wives’ lovers, and wives can sue other women who publicly display an adulterous connection with their husband.

Keirov Kritteeranon, secretary-general of the Office of the Ombudsman, stated that the Ombudsman had previously urged the court to rule on the legality of Section 1523, which allowed wives to suit only female lovers.

Husbands can now sue their wives’ boyfriends regardless of gender, and there was no requirement for any public declaration of an adulterous connection, he claimed.

Once enforced, Tuesday’s Constitutional Court order, according to the Ombudsman, will correct this imbalance.

Thailand Amends Marriage Law

Meanwhile, Thailand is set to become the first Southeast Asian country to recognise same-sex marriage, after its marriage equality law was passed in the Upper House on Tuesday and is now on its approach to being promulgated before going into effect in the coming months.

LGBTQ+ advocates rejoiced as the Senate voted 130-4 to pass the bill on its final reading, with 18 abstentions. They hailed the development as a win in their long struggle for equal rights.

When the advocates who had gathered at parliament on Tuesday to witness the Senate’s final reading and vote on the measure heard the outcome, they burst out in cheers.

They next went to authorities House, where the authorities had planned a celebratory reception for them later in the day. They then went to the Bangkok Art and Culture Centre, where the party lasted until late at night.

Prime Minister Srettha Thavisin, who is on sick leave due to Covid-19, congratulated them via Zoom call from Government House.

The new law will allow any two people aged 18 or older to register their marriage and obtain the same advantages and rights as heterosexual couples. The bill refers to married couples as “two individuals” rather than “a man and a woman,” and changes their legal status from “husband and wife” to “spouses.”

LGBTQ+ people from any country can legally marry in Thailand. When the bill goes into force, foreign same-sex married partners will be eligible for a spousal visa.

The law will be sent to the government for approval before being presented to the monarch.

It will take effect within 120 days of its publication in the Royal Gazette, making Thailand the third Asian country to accept same-sex marriages after Nepal and Taiwan.

Senator Kamnoon Sidhisamarn, spokesman for the Senate’s special committee evaluating the proposed law, called it a victory for equal rights campaigners.

“There is no reason for the Upper House to disagree with the judgement made by the House of Representatives,” he told reporters. He was referring to the legislation’s passage in the Lower House prior to its submission to the Senate for approval.

The battle for same-sex marriage legislation began 23 years ago. Tunyawaj Kamolwongwat, a Move Forward Party list-MP, said that the law’s passage on Tuesday signified the beginning of a new chapter in Thai history.

Source: Bangkok Post

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Legal

Thailand’s Senate Passes Landmark Marriage Equity Bill Legalizing Gay Marriage

Thailand’s Senate has approved a long awaited marriage equality bill on Tuesday, making the country the third Asian country to accept same-sex couples. The Senate approved the law 130-4 with 18 abstentions.

The marriage equality bill will be sent the palace for royal clearance. The marriage equality law takes 120 days to take effect after Royal Gazette publication.

LGBTQ+ advocates welcomed the proposal a “monumental step forward” because Thailand would be the first Southeast Asian country to legalise marriage equality. Thailand is popular with travellers due to its LGBTQ+ culture and tolerance.

“This would underscore Thailand’s leadership in the region in promoting human rights and gender equality,” the Civil Society Commission of marriage equality, activists, and LGBTI+ couples said.

Prime Minister Srettha Thavisin, who wore a rainbow shirt to commemorate Pride Month, joined thousands of LGBTQ+ revellers and activists in a Bangkok parade at the start of June.

The prime minister will open Government House to commemorate the bill’s passage. Pride supporters will march from Parliament to the prime minister’s office. Mr. Srettha, who has Covid-19, will join them online after taking several days off.

Deputy Prime Minister and Commerce Minister Phumtham Wechayachai anticipates June’s Pride Month to create approximately 4.5 billion baht in economic cash flow.

Marriage Equity Bill

Pride Month in Thailand

On Saturday, Mr. Phumtham said the government under Prime Minister Srettha Thavisin is encouraging sexual diversity and working with the commercial sector to plan more Pride Month festivities to attract LGBTQ+ tourists.

He claimed it will increase the country’s trade potential by giving SMEs business expansion chances and adding soft power value.

Mr. Phumtham claimed Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office, told him Pride Month celebrations will make Thailand a “pride-friendly destination” for LGBTQ+ Thai and global consumers.

This would help the country become a regional tourism hub under the government’s “Ignite Tourism Thailand” initiative to enhance tourism in 55 “worth visiting” provinces.

He added that such festivals will support downstream industries like event planners, food and beverage companies, hotels, and transport services and disperse cash to local areas. Mr. Phumtham stated Thailand’s Pride Month began in 1999. Bangkok, Chiang Mai, Phuket, and Chon Buri host parades, festivities, and campaigns.

The Tourism Authority of Thailand (TAT) expects approximately 860,000 people to attend this year’s festival and contribute at least 4.5 billion baht for the economy. LGBT Capital estimates that the world’s LGBTQ+ population has US$4.7 trillion in purchasing power and Thailand’s sexually varied population has US$26 billion.

LGBTQ+ rights in Thailand are improving, but there’s still much to do. The LGBTQ+ community in Thailand is notably strong in Bangkok and Pattaya.

Strong legal recognition allows transgender people to change their names and titles. Many LGBTQ+ couples lack legal rights since same-sex marriage is banned.

Marriage Equity Bill

LGBTQ+ rights in Thailand

Thailand is becoming more accepting despite these difficulties. LGBTQ+ rights are gaining favour. Activists want legal changes to guarantee equality.

Pride parades are becoming increasingly visible, demonstrating diverse acceptance. While challenges remain, LGBTQ+ rights in Thailand are improving as awareness and acceptance expand.

Legal

Protecting Your Designs: Intellectual Property Rights in the Jewelry Manufacturing Industry

Intellectual Property jewellery

The jewelry manufacturing industry is a vibrant and highly competitive sector where creativity and innovation are paramount. Designers invest significant time, effort, and resources into crafting unique pieces that appeal to consumers’ tastes and preferences. However, this industry faces a persistent challenge: the protection of original designs from imitation and unauthorized use.

Intellectual property rights (IPR) play a crucial role in safeguarding jewellery designs, ensuring that creators receive recognition and financial benefits from their work. This article delves into the various forms of intellectual property rights pertinent to the jewelry manufacturing industry and offers insights on how designers can protect their creations.

Understanding Intellectual Property Rights

Intellectual property rights are legal mechanisms that grant creators exclusive rights to their inventions, designs, and artistic works. These rights encourage innovation by providing creators with the means to control the use of their creations and to benefit financially from them. In the context of jewelry design, the most relevant forms of IPR are copyrights, trademarks, patents, and design rights.

Copyrights

Copyright protection extends to original works of authorship, including artistic creations such as jewelry designs. Under copyright law, the designer of a piece of jewelry automatically acquires the exclusive right to reproduce, distribute, and display the design upon its creation. This protection does not require registration, although registering the copyright with the appropriate governmental body, such as the U.S. Copyright Office, can provide additional legal benefits and evidence of ownership.

For jewelry designers, copyright protects the aesthetic aspects of a piece, such as the specific design, patterns, and artistic expressions. However, it does not cover the functional elements or the materials used. The duration of copyright protection varies by country, but it typically lasts for the life of the creator plus an additional 50 to 70 years.

Trademarks

Trademarks protect symbols, names, logos, and slogans that distinguish goods and services in the marketplace. For jewelry manufacturers, a trademark can cover the brand name, logo, or even a unique product line name.

Registering a trademark with the appropriate authority, such as the United States Patent and Trademark Office (USPTO), provides nationwide protection and the exclusive right to use the mark in connection with the specified goods or services.

A strong trademark helps consumers identify and differentiate a brand’s products from those of competitors, fostering brand loyalty and reducing the risk of confusion in the marketplace. It also provides legal recourse against counterfeiting and unauthorised use of the brand’s identity.

Patents

Patents protect new inventions and technical innovations. In the jewelry industry, this could include innovative manufacturing processes, unique mechanisms for adjustable or interchangeable jewelry, or novel materials and techniques. A patent grants the inventor the exclusive right to use, make, and sell the invention for a limited period, usually 20 years from the filing date of the patent application.

Obtaining a patent involves a rigorous process of proving that the invention is novel, non-obvious, and useful. For jewelry designers, the primary benefit of patent protection lies in safeguarding their innovative techniques and mechanical features, which can provide a competitive edge in the market.

Design Rights

Design rights specifically protect the visual appearance of a product, including its shape, configuration, pattern, and ornamentation. These rights are particularly relevant to the jewelry industry, where the aesthetic appeal of a product is a key selling point. In many jurisdictions, design rights must be registered to be enforceable, though some countries offer unregistered design rights that provide limited protection.

Registering a design right involves submitting detailed representations of the design to the relevant authority, such as the European Union Intellectual Property Office (EUIPO) for protection within the EU. Registered design rights typically offer protection for up to 25 years, subject to renewal fees.

Steps to Protect Jewelry Designs

Document Your Designs: Maintain detailed records of your design process, including sketches, prototypes, and finished pieces. This documentation can serve as evidence of originality and ownership in case of disputes.
Conduct Searches: Before launching a new design, conduct thorough searches to ensure it does not infringe on existing intellectual property. This can prevent legal issues and costly disputes.
Register Your IP: Where applicable, register your copyrights, trademarks, patents, and design rights with the appropriate authorities. Registration enhances protection and provides legal advantages in enforcing your rights.
Use NDAs and Contracts: When working with manufacturers, suppliers, and collaborators, use non-disclosure agreements (NDAs) and detailed contracts to protect your designs and outline the terms of use. ( Check out EJ: A Jewelry Manufacturer with NDA’s.
Monitor the Market: Regularly monitor the market for potential infringements. This can involve online searches, attending trade shows, and staying informed about competitors’ activities.
Take Legal Action if Necessary: If you discover an infringement, take prompt legal action to enforce your rights. This may involve sending cease-and-desist letters, pursuing litigation, or seeking alternative dispute resolution methods.

Challenges and Considerations

While intellectual property rights offer significant protection, there are challenges and limitations to consider. The cost and complexity of obtaining and enforcing IPR can be prohibitive, especially for small designers and startups. Additionally, the global nature of the jewelry market means that protections obtained in one jurisdiction may not be recognized elsewhere, necessitating international strategies for comprehensive protection.

Moreover, the fast-paced nature of fashion and jewelry trends can make lengthy registration processes impractical for certain designs. In such cases, relying on unregistered design rights or focusing on brand protection through trademarks may be more viable strategies.

Conclusion

Intellectual property rights are a vital tool for protecting the creativity and innovation that drive the jewelry manufacturing industry. By understanding and strategically utilizing copyrights, trademarks, patents, and design rights, designers can safeguard their creations, enhance their competitive edge, and ensure they reap the financial rewards of their ingenuity. As the industry continues to evolve, staying informed about IPR and adapting to emerging challenges will be crucial for sustaining success in the dynamic world of jewelry design.