ACH Return Codes Explained

This article covers the reasons behind ACH return codes and what to do in order to reach a resolution.

Code	Reason	Description	Time Frame
R01	Insufficient Funds	The available and/or cash reserve balance is insufficient to cover the debit entry's dollar value.	2 Banking Days
		What to Do:
		You can try the transaction again (you will need to re-enter it as a new transaction) up to two times within 30 days of the original authorization date.
R02	Account Closed	A previously active account has been closed by action of the customer or the RDFI.	2 Banking Days
		What to Do:
		Contact your customer for a different bank account or for another form of payment. If you have not yet shipped the goods or provided the services covered by the payment, you may want to wait to do so until you have confirmation of a settled payment.

R03	No Account / Unable to Locate Account	The account number structure is valid, and it passes the check digit validation, but the account number does not correspond to the individual identified in the entry, or the account number designated is not an open account.	2 Banking Days
		What to Do:
		Contact your customer and confirm the Routing Number, Bank Account Number, and the exact name on the bank account. (You can request a copy of a voided check so that you can verify.) If this information does not exactly match what you initially entered, make changes and submit a NEW payment.

R04	Invalid Account Number	The account number structure is not valid. The entry may fail the check digit validation or may contain an incorrect number of digits.	2 Banking Days
		What to Do:
		Obtain the correct bank account number.(You can request a copy of a voided check so that you can verify.) Submit a NEW payment using the corrected bank account number.

R05	Unauthorized Debit Entry	Account number structure not valid: entry may fail check digit validation or may contain incorrect number of digits. * You cannot re-submit this transaction. Any additional transactions you attempt to process against this account will also be returned unless your customer specifically instructs his bank to accept them.	60 Calendar Days

		What to Do:
		Contact your customer and resolve any issues that caused the transaction to be disputed. You can ask the customer for a different form of payment or ask to debit a different bank account. If you need to debit the same bank account, instruct your customer to call the bank and remove the block on transactions. Unfortunately, no dispute resolution is available to you within the ACH Network. If your customer continues to claim the transaction was not authorized, but you have proof that it was properly authorized, you will need to sue your customer in Small Claims Court to collect. If this action is taken, please contact AndDone.




R06	Returned per ODFI’s Request	The ODFI has requested that the RDFI return the ACH entry. If the RDFI agrees to return the entry, the ODFI must indemnify the RDFI according to Article Five (Return, Adjustment, Correction, and Acknowledgment of Entries and Entry Information) of these Rules.	Deadline not defined
		What to Do:
		Please contact AndDone
R07	Authorization Revoked by Customer (adjustment entries)	Authorization Revoked by Customer – The consumer, who previously authorized ACH payment, has revoked authorization from the Originator (must be returned no later than 60 days from the settlement date, and the customer must sign an affidavit).	60 Calendar Days
		What to Do:
		Immediately suspend any recurring payment schedules entered for this bank account. This will prevent additional transactions from being returned while you address the issue with your customer. Then contact your customer and resolve any issues that caused the transaction to be disputed or the schedule to be cancelled. You can ask the customer for a different form of payment or ask to debit a different bank account. If you need to debit the same bank account, instruct your customer to call the bank and remove the block on transactions. Unfortunately, no dispute resolution is available to you within the ACH Network. If your customer continues to claim the transaction was not authorized, but you have proof that it was properly authorized, you will need to sue your customer in Small Claims Court to collect. If this action is taken, please contact AndDone.



R08	Payment Stopped or Stop Payment on Item	The Receiver of a recurring debit transaction has the right to stop payment on any specific ACH debit. The RDFI should verify the Receiver’s intent when a request for stop payment is made to ensure this is not intended to be a revocation of authorization. A stop payment order shall remain in effect until the earliest of the following occurs: a lapse of six months from the date of the stop payment order, payment of the debit entry has been stopped, or the Receiver withdraws the stop payment order. OR The RDFI determines that a stop payment order has been placed on the item to which the PPD debit entry constituting notice of presentment or the PPD Accounts Receivable Truncated Check Debit Entry relates. [The RDFI determines that a stop payment order has been placed on the item to which the PPD Accounts Receivable Truncated Check Debit Entry relates.]	2 Banking Days



		What to Do:
		Contact your customer and resolve any issues that caused the transaction to be stopped. You can re-enter the returned transaction again with proper authorization from your customer. You can also ask your customer for a different form of payment.

R09	Uncollected Funds	A sufficient book or ledger balance exists to satisfy the dollar value of the transaction, but the dollar value of transactions in the process of collection (i.e., uncollected checks) brings the available and/or cash reserve balance below the dollar value of the debit entry.	2 Banking Days
		What to Do:
		You can try the transaction again (you will need to re-enter it as a new transaction) up to two times within 30 days of the original authorization date.
R10	Customer Advises Not Authorized; Item Is Ineligible, Notice Not Provided, Signatures Not Genuine, or Item Altered (adjustment entries)	For entries to Consumer Accounts that are not PPD debit entries constituting notice of presentment or PPD Accounts Receivable Truncated Check Debit Entries in accordance with Article Two, subsection 2.1.4(2), the RDFI has been notified by its customer, the Receiver, that the Originator of a given transaction has not been authorized to debit his account. [For entries to Consumer Accounts that are not PPD Accounts Receivable Truncated Check Debit Entries in accordance with Article Two, subsection 2.1.4(2) (Authorization/Notification for PPD Accounts Receivable Truncated Check Debit Entries), the RDFI has been notified by its customer, the Receiver, that the Originator of a given transaction has not been authorized to debit his account.]	60 Calendar Days
		What to Do:
		The Receiver may request immediate credit from the RDFI for an unauthorized debit. The request must be made in writing within fifteen (15) days after the RDFI sends or makes available to the Receiver information pertaining to that debit entry. OR Immediately suspend any recurring payment schedules entered for this bank account. This will prevent additional transactions from being returned while you address the issue with your customer. Then contact your customer and resolve any issues that caused the transaction to be disputed or the schedule to be cancelled. You can ask the customer for a different form of payment or ask to debit a different bank account. If you need to debit the same bank account, instruct your customer to call the bank and remove the block on transactions.




R11	Customer Advises Entry Not in Accordance with the Terms of the Authorization	Used by the RDFI to return an entry for which the Originator and Receiver have a relationship, and an authorization to debit exists, but there is an error or defect in the payment such that the entry does not conform to the terms of the authorization. (i.e., “an incorrect amount,” “payment was debited earlier than authorized” ) For ARC, BOC, or POP, errors with the original source document and errors may exist. (i.e. “document is ineligible,” “notice was not provided to Receiver,” “amount was not accurate per the source document”)	60 Calendar Days



R12	Branch Sold to Another DFI	A financial institution may continue receiving entries destined for an account at a branch sold to another financial institution. Because the RDFI no longer maintains the account and cannot post the entry, it should return it to the ODFI.	2 Banking Days
		What to Do:
		Obtain new Routing Number and Bank Account Number information, then enter a NEW transaction using the updated account numbers.
R13	RDFI not qualified to participate	The financial institution is not qualified to participate in ACH, or the routing number is incorrect.	Deadline not defined
		What to Do:
		Double-check that you entered the Routing Number correctly, and contact your customer to confirm it if necessary. Then, submit a NEW payment using the correct routing number.
R14	Representative Payee Deceased or Unable to Continue in that Capacity	The representative payee is a person or institution authorized to accept entries on behalf of one or more other persons, such as legally incapacitated adults or minor children. The representative payee is either deceased or unable to continue in that capacity. The beneficiary is not deceased.	2 Banking Days
R15	Beneficiary or Account Holder (Other Than a Representative Payee) Deceased	(1) The beneficiary is the person entitled to the benefits and is deceased. The beneficiary may or may not be the account holder or (2) The account holder (acting in a non-representative payee capacity) is an account owner and is deceased.	2 Banking Days

R16	Account Frozen	The funds in the account are unavailable due to specific actions taken by the RDFI or by legal action.	2 Banking Days
		What to Do:
		Obtain a different form of payment. You cannot process transactions using this bank account until it is unfrozen.
R17	File Record Edit Criteria (Specify)	Some fields that are not edited by the ACH Operator are edited by the RDFI. If the entry cannot be processed by the RDFI, the field(s) causing the processing error must be identified in the addenda record information field of the return.	2 Banking Days
R20	Non-Transaction Account	The ACH entry is destined for a non-transaction account. This would include either an account against which transactions are prohibited or limited.	2 Banking Days
		What to Do:
		Contact your customer to obtain authorization to charge a different bank account. Or Ask for a different form of payment.


R21	Invalid Company Identification	The identification number used in the Company Identification Field is not valid. This Return Reason Code will normally be used on CIE transactions.	2 Banking Days
R22	Invalid Individual ID Number	In CIE and MTE entries, the Receiver uses the Individual ID Number to identify the account. The Receiver has indicated to the RDFI that the number with which the Originator was identified is incorrect.	2 Banking Days
R23	Credit Entry Refused by Receiver	The Receiver may return a credit entry because one of the following conditions exists: (1) a minimum amount required by the Receiver has not been remitted; (2) the exact amount required has not been remitted; (3) the account is subject to litigation and the Receiver will not accept the transaction; (4) acceptance of the transaction results in an overpayment; (5) the Originator is not known by the Receiver; or (6) the Receiver has not authorized this credit entry to this account.	Deadline not defined
		What to Do:
		Contact your customer to work out the problem, or ask them to work the problem out with their bank. Have your customer confirm that the refund will be accepted, then attempt to refund the transaction again. Alternatively, you can send your customer a paper check for the refund amount.

R24	Duplicate Entry	The RDFI has received what appears to be a duplicate entry, i.e., the trace number, date, dollar amount, and/or other data matches another transaction. This code should be used with extreme care. The RDFI should know that if a file has been duplicated, the Originator may have already generated a reversal transaction to handle the situation.	2 Banking Days
		What to Do:
		Contact AndDone
R29	Corporate Customer Advises Not Authorized	The RDFI has been notified by the Receiver (non-consumer) that the Originator of a given transaction has not been authorized to debit the Receiver’s account.	2 Banking Days
		What to Do:
		Immediately suspend any recurring payment schedules entered for this bank account. This will prevent additional transactions from being returned while you address the issue with your customer. Then contact your customer and resolve any issues that caused the transaction to be disputed or the schedule to be cancelled. You can ask the customer for a different form of payment or ask to debit a different bank account. If you need to debit the same bank account, instruct your customer to call the bank and remove the block on transactions. Unfortunately, no dispute resolution is available to you within the ACH Network. If your customer continues to claim the transaction was not authorized, but you have proof that it was properly authorized, you will need to sue your customer in Small Claims Court to collect. If this action is taken, please contact AndDone.