When an ACH payment is sent, the receiving bank will either accept or reject the payment. If the payment is rejected, the bank will send back an ACH return code explaining why the payment was returned.
There are a variety of reasons why an ACH payment may be rejected, such as insufficient funds, incorrect account information, or a stop payment order on the account.
Below is a list of the most common ACH return codes and their explanations:
- R01 – Insufficient Funds: This return code is issued when there are not enough funds available in the account to cover the payment.
- R02 – Account Closed: This return code is issued when the account is no longer active or has been closed by the bank.
- R03 – No Account/Unable to Locate Account: This return code is issued when the account number provided is invalid or the bank is unable to locate the account.
- R04 – Invalid Bank Transit Number: This return code is issued when the bank transit number is invalid.
- R05 – Unable to Locate Bank: This return code is issued when the bank routing number is invalid or the bank cannot be located.
- R06 – Returned per ODFI’s Request: This return code is issued when the Originating Depository Financial Institution (ODFI) has requested the return of the payment.
- R07 – Authorization Revoked by Customer: This return code is issued when the customer has revoked the authorization for the payment.
- R08 – Payment Stopped: This return code is issued when a stop payment order has been placed on the account.
- R10 – Customer Advises Not Authorized: This return code is issued when the customer has advised that the payment is not authorized.
- R11 – Check Truncation Entry Return: This return code is issued when a check truncation entry is returned.
- R12 – Branch Sold to Another DFI: This return code is issued when the account has been transferred to another financial institution.
- R13 – RDFI Not Qualified to Participate: This return code is issued when the RDFI is not qualified to participate in the ACH Network.
- R14 – Representation Error: This return code is issued when there is an error with the customer’s account information.
- R15 – Addenda Error: This return code is issued when there is an error with the payment’s addenda information.
- R16 – Account Number Field Error: This return code is issued when there is an error in the account number field.
- R17 – Cannot Debit Account Holder: This return code is issued when the account holder cannot be debited for the payment.
- R18 – Return Unauthorized RDFI: This return code is issued when the RDFI is not authorized to return the payment.
- R20 – Invalid Company Identification: This return code is issued when the company identification number is invalid.
- R21 – Invalid Individual Identification: This return code is issued when the individual identification number is invalid.
- R22 – Invalid Receiver’s ABA Number: This return code is issued when the receiver’s bank routing number is invalid.
- R23 – Credit Entry Refused by Receiver: This return code is issued when the receiver has refused the credit entry.
ACH return codes are standardized by NACHA to ensure that all financial institutions are using the same codes and descriptions. This makes it easy for businesses to understand why their payments were returned, and take action accordingly.
If you have questions about ACH return codes or need help understanding why your payment was returned, our team of experts is here to help. Contact us today to learn more.