A method, and system for processing electronic return items, the method comprising: receiving directly or indirectly from a plurality of different payor banks a plurality of different electronic return notification files, each electronic return notification file in the plurality for a different bank of first deposit, each electronic return notification file including a data structure with a designated bank of first deposit, an amount, and a reference key for the return item and a return reason; sorting multiple electronic return notification files by designated bank of first deposit; and sending each of a plurality of the electronic return notification files directly or indirectly to its respective designated bank of first deposit.