R08

What Is ACH Return Code R08?

ACH return codes are used to identify the reason an ACH payment has been returned by the recipient's bank. They make it easier for originating and receiving financial institutions to spot and communicate payment failures.

ACH Return Code R08, also known as “Payment Stopped,” is a standard code used in Automated Clearing House (ACH) transactions. R08 indicates that a customer has stopped payment on a transaction.

How To Address ACH Return Code R08

Nacha prescribes separate rules for handling each return code since each one represents a unique scenario. ODFIs (Originating Depository Financial Institutions) and RDFIs (Receiving Depository Financial Institutions) are responsible for handling ACH return codes according to these rules.

For example, if your business is attempting to initiate an ACH debit for $100, but your customer issued a stop payment on the transaction before it was completed, the bank would return the transaction with code R08. The customer’s bank must return the transaction with code R08 within 2 banking days.

Customers can issue stop payments for a variety of reasons–including fraud concerns, insufficient funds, issues with the service or product, and more–so it is important to contact your customer to see what caused them to issue the stop payment.

If you encounter R08, you can try the following to address it:

• Contact your customer directly to see why the stop payment was issued and help them resolve the issue, if possible
• Attempt the transaction again, with proper authorization from your customer. It is important to note here that if you attempt the same transaction again immediately, with the same bank account information or without proper authorization, you could be subject to a fine. The best course of action is to collect alternate payment information from your customer before attempting the transaction again.

What Is An ACH Return Code?

ACH return codes identify the reason an ACH payment was returned by the recipient's bank. They make it easier for originating and receiving financial institutions to spot and communicate payment failures. Each code begins with 'R' followed by a two digit number. ACH return codes are standardized and maintained by NACHA, the governing body for the ACH network.