TN 31 (01-08)
GN 02402.250 Allegations of Nonreceipt of International Direct Deposit
A. Reasons for Nonreceipt
Because of internal controls included in the various stages of the International Direct Deposit (IDD) process, it is unlikely that IDD payments will be lost. In most instances, one of the following will have occurred:
The payment was not issued.
The payment was intercepted (see GN 02402.235).
The payment was rejected by the processor bank because of invalid bank data. (See GN 02402.240 for common errors in coding Canadian IDD.)
The RTN and/or DAN is not accurate.
The payment was received at the beneficiary's FI but has not been credited to the account.
The payment was credited by the FI earlier or later than expected.
The account to which the payment was sent via IDD is in the wrong currency for IDD to that country, which caused the payment to be rejected and returned by the processor FI or the beneficiary's FI.
For Canada, the RTN prefix may have been coded for a wrong currency. For a Canadian dollar account, it should be 51; for a U.S. dollar account, it should be 62. See GN 02402.300C.4.a. for a list of some ways to tell when the account is a U.S. dollar account at certain Canadian FIs.
If the missing payment is a PMA payment, it may have been sent after the End of COM and will be paid in the following month. (See GN 02402.225A.2.)
The payment to a beneficiary with a rep payee may have been rejected because the FIs in that country do not allow an account title such as “John Smith for Mary Smith.”
The beneficiary may have intended to have direct deposit to a U.S. bank, but presented a deposit slip as evidence of the bank data. Internal bank routing numbers on U.S. deposit slips mainly begin with 5, 6, or 7. Payments may then be sent to a country for which the two-digit country code is the same as the first two digits on the deposit slip.
IDD payments to most countries are made in local currency, not U.S. dollars. Therefore, a payment amount for a beneficiary in one of those countries will appear different from the information on PHUS.
B. IDD Nonreceipt Process
IDD nonreceipt is a two-step process. The person who receives the report first makes a nonreceipt input to document the report. But this input does not result in any action. SSA's system accepts the input, but the Department of the Treasury (DT) cannot process the resulting report. The coding on the PHUS looks as if DT is investigating, but no investigation occurs when either the current RTN or the RTN to which the payment was issued begins with 5, 6, or 7. Therefore, for all IDD payments to Australia, Canada, Greece, Panama, or a country included in a multi-country contract, a nonreceipt form SSA 1711 (GN 02402.250C.) needs to go to FRBKC to request a trace action. For nonreceipt of IDD payments to all other IDD countries, the FBU contacts the processor bank.
C. Nonreceipt Procedure
When a report of nonreceipt of a direct deposit payment for a beneficiary outside the U.S. is received in a border FO, a TSC, Office of Earnings and International Operations (OEIO), an FBU, or a consular office, follow these steps.
Verify payment and account information. Determine whether:
· the payment was issued, and
the RTN and DAN are correct, and
the account is in the correct currency for that country. (See GN 02402.200 for the reference for that country.)
If possible, obtain the name and address of the bank, as well as the bank code and bank account number.
If corrections are needed, make corrective input. GN 02402.220D. lists the locations of coding instructions for all IDD countries. If you are in a component unfamiliar with the correct coding for the required country, obtain complete bank information and send a request to OEIO to make the input. If you are in a non-claims taking FBU, send the nonreceipt information and correct bank data to the Regional Foreign Benefits Officer's (RFBO's) office for input.
NOTE: Non-claims taking units follow the RFBO's instructions for processing nonreceipt, instead of completing the following steps. Claims taking units follow these steps to correct the data.
If the account is not in the correct currency for that country, ask the beneficiary to provide bank data for an account in the correct currency.
If the account in Canada is coded with the wrong prefix for the currency in that account, correct the prefix and compute the correct check digit. Follow GN 02402.300D., GN 02402.300E., or GN 02402.300F.
Inform the beneficiary that the payment will be returned to SSA and reissued to the correct account information you have obtained and input. Estimate three to four weeks from the payment date for the payment to be returned to SSA, reissued, and deposited into the correct account. Add an additional three weeks, if the payment has already been returned and reissued to an incorrect account.
Determine whether the RTN to which the payment was issued begins with either 5, 6, or 7.
If the payment was issued by check or to an RTN that does not begin with 5, 6, or 7, follow procedures in GN 02406.000 for nonreceipt of U.S. check or direct deposit.
If the payment was issued to an RTN that was not for the country where the beneficiary holds an account, ask if the beneficiary wanted payments to go to a U.S. bank. If yes, ask for the correct information for the U.S. account. (Don’t accept information from a deposit slip.)
If the payment was issued to an account at an FI with an RTN beginning with 5, 6, or 7, go to step 5.
Determine whether the payment was either intercepted at FRBKC (GN 02402.235) or rejected by the processor bank (GN 02402.245). (If PHUS shows the payment has been returned, assume that the payment was intercepted or rejected.) For either of these situations, take corrective action as necessary to correct the bank data.
NOTE: An ENR or NOC IDD sent through ITS.gov and posted to the MBR will not start payments for a record in suspense.
Explain that the intercepted or rejected payment will be returned to SSA and reissued about 10 business days after the payment date. (If it has already been returned and reissued to the incorrect bank data, estimate three weeks from the date the PMA payment was sent from SSA, for it to reject again and be returned to SSA.) Estimate that the beneficiary will receive the payment about two weeks after the date the payment is returned and reissued to the correct bank data. (For more about PMA payment dates, see GN 02402.225A.)
Determine whether the account to which the payment was sent is for the correct type of currency for IDD to that country. (See GN 02402.220D. for the reference for specific information about IDD to the country where the payment was sent.)
If the account to which the payment was sent is for the correct type of currency for IDD to that country, obtain and input correct information. Inform the beneficiary that the payment will be returned to SSA and reissued to the correct account information you have obtained and input.
For Canada, follow GN 02402.300D., GN 02402.300E., or GN 02402.300F., to code the correct Canadian or U.S. dollar account information.
For all others, obtain and input direct deposit information for the correct currency account. If a beneficiary does not have an account in the correct IDD currency, ask if the beneficiary would like to open an account in the correct currency for IDD to that country or have direct deposit in U.S. dollars to an account at a U.S. FI. If the beneficiary wants direct deposit to another account, make the input. If not, cancel the direct deposit and explain that payments will be sent by check.
If the account to which the payment was sent is in the correct currency for IDD to that country, and the bank information was correctly coded, make sure the beneficiary has contacted the FI to inquire about a late posting.
If the payment was issued to an account in the correct currency and the FI alleges not receiving the payment and the payment was sent to an account in France, Germany, Ireland, Italy, Mexico, Norway, Portugal, Spain, Sweden, or United Kingdom, do the following:
If you are in a Federal Benefits Unit in one of the countries listed above, ask the processor bank to trace the payment. Notify OEIO if the processor bank is unable to trace the payment.
If you are in OEIO, ask the Federal Benefits Unit to ask the processor bank to trace the payment. If the processor bank is unable to trace the payment, contact FRBKC for assistance.
If you are in an FO, a TSC, or a PC other than OEIO, send a request to OEIO.
If the payment was issued to an account in the correct currency and the beneficiary states that the FI alleges not receiving the payment and the payment was not sent to an account in one of the countries in step 7, send a nonreceipt form SSA 1711 (GN 02402.250C.) to the Federal Reserve Bank of Kansas City (FRBKC) for assistance. If you are in a border FO or a TSC, send an administrative message or MDW to OEIO “Attn.: Nonreceipt 555,” as follows:
“International Direct Deposit nonreceipt for (country name) for (beneficiary's name, Social Security claim number, BIC, RTN/DAN, payment date, payment amount). Please contact Federal Reserve Bank of Kansas City.”
NOTE: OEIO will send an SSA-1711 to FRBKC.
FRBKC and the processor FI will trace missing payments through the foreign direct deposit system. Payments will be located and either credited to the account or returned.
If the nonreceipt allegation is not resolved in 14 days, send a follow-up message by fax to OEIO at 410–965–4648.
If the payment was deposited into an incorrect account belonging to someone else and is no longer available, go to step 11 and also follow GN 02406.020.
If the beneficiary alleges dire need or if a public relations problem exists, issue a Critical Payment System (CPS) check. If you do not have access to CPS, request the payment through OEIO by a fax to the Sensitive Case Staff, 410-965-8020. You may also issue an Immediate Payment for dire need or a public relations problem, if the claimant can get to an FO to pick up the check.
NOTE: DT's systems cannot process CPS payments through international direct deposit. Also, only OEIO can process a CPS payment by check to a foreign address if the address on the MBR is not the correct mailing address and the new address must be included in the CPS request.
D. Exhibit – Nonreceipt Form SSA-1711
The Nonreceipt Form SSA-1711 is used to send a nonreceipt request to Federal Reserve Bank of Kansas City when SSA receives a report of nonreceipt for a payment to Australia, Canada, Greece, Panama or a country included in a multi-country contract. Click the following link to access the SSA-1711.
Alphabetical list of IDD countries and IDD instructions; alphabetical list of IDD enrollment forms, GN 02402.200
Coding instructions for IDD countries, list of references, GN 02402.220D.
Intercepted IDD payments, GN 02402.235
Nonreceipt of direct deposit to U.S. banks, GN 02406.007
PMA payment dates, GN 02402.225
Recovery of direct deposit payment deposited to wrong account, GN 02406.020
Rejected IDD payments, GN 02402.245
RTN prefixes for IDD countries, GN 02402.220B.