When it comes to ACH return codes, there are a lot of them. In this guide, we’ll go over some of the most common ones so that you can be better prepared when dealing with them.
- R01: Insufficient Funds
This is the most common ACH return code and it means that there were not enough funds in the account to cover the transaction. This can happen for a number of reasons, but usually it’s because the account holder didn’t have enough money in their account to cover the transaction.
- R02: Account Closed
This return code indicates that the account was closed at the time of the transaction. This could be because the account holder closed the account, or because the bank closed the account due to suspicious activity.
- R03: No Account/Unable to Locate Account
- This code means that the account number used for the transaction was invalid. This could be because the account number was entered incorrectly, or because the account has been closed.
- R04: Invalid Account Number/Special Character
This return code indicates that the account number used for the transaction was invalid.
- R05: Unable to Locate Previous High Value Transaction
This return code means that the bank was unable to find a previous transaction for the account holder that was for the same amount of money. This could be because the account holder has never made a transaction of that amount before, or because the bank’s records are not up to date.
- R06: Returned per ODFI’s Request
This return code indicates that the transaction was returned at the request of the Originating Depository Financial Institution (ODFI). This could be for a number of reasons, but usually it’s because there was something wrong with the transaction.
- R07: Authorized Share Draft
This return code indicates that the transaction was an authorized share draft. This means that the account holder authorized the transaction, but there were not enough funds in the account to cover it.
- R08: Payment Stopped
This return code means that the account holder stopped payment on the check that was used for the transaction. This could be because they didn’t have enough money in their account to cover the check, or because they changed their mind about the transaction.
- R09: Uncollected Funds
This return code indicates that the account holder had insufficient funds to cover the transaction. This could be because they didn’t have enough money in their account, or because the check they used for the transaction hadn’t cleared yet.
- R10: Customer Advises Not Authorized
This return code means that the account holder told the bank that they did not authorize the transaction. This could be because they didn’t make the transaction, or because they didn’t understand what they were authorizing.
- R11: Check Truncation Entry Returned
This return code indicates that the transaction was a check that was truncated (the information from the check was converted to an electronic format). This could be because the check was damaged, or because the bank doesn’t accept paper checks.
- R12: Branch Sold to Another DFI
This return code means that the account holder’s bank branch was sold to another financial institution. This usually happens when two banks merge, or when one bank buys another bank.
- R13: Invalid ACH Routing Number
This return code means that the ACH routing number was invalid. This could be because the routing number was entered incorrectly, or because the bank has changed its routing number.
- R14: Representative Payee Deceased/Incapacitated
This return code means that the account holder is a representative payee, and the person they are representing is deceased or incapacitated. This could be because the account holder is a guardian for someone who has died, or because they are caring for someone who is unable to make their own financial decisions.
- R15: Direct Deposit Fraudulent Entry
This return code means that the transaction was a direct deposit, and the bank believes that the deposit is fraudulent. This could be because the account holder didn’t authorize the deposit, or because the deposit was for more money than the account holder usually receives.
- R16: Account Frozen
This return code means that the account holder’s account is frozen. This could be because the account holder has not paid their taxes, or because the bank suspects that the account is being used for fraud.
Finally, the -R17 through -R26 return codes are reserved for future use. This means that the codes have not been assigned to any specific meaning yet, but they may be in the future.
If you see any of these return codes on your bank statement, it’s important to contact your bank to find out more information. The bank should be able to tell you why the transaction was returned, and what you need to do to fix the problem.
Returned Checks:
If a check is returned, it means that the account holder did not have enough money in their account to cover the check. This could be because they wrote a check for more money than they had in their account, or because the check was for an amount that they had not yet deposited into their account.
If a check is returned, the account holder will usually be charged a fee by their bank. The account holder may also be charged a fee by the company or person who received the check.
If you receive a returned check, you should contact the account holder to arrange for payment. The account holder may need to make a deposit into their account, or they may need to write you a new check.