R14

What Is ACH Return Code R14?

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 R14, also known as "Representative Payee Deceased or Unable to Continue in That Capacity," is a standard code used in Automated Clearing House (ACH) transactions. This return code indicates that the representative payee designated to manage funds on behalf of a beneficiary—such as minor children or legally incapacitated adults—is deceased or no longer able to fulfill their responsibilities. It is important to note here that this return code does not indicate that the beneficiary themself has died, but that the person(s) acting on their behalf has died and the transaction is not able to be processed as a result.

How To Address ACH Return Code R14

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 the representative for the customer you are trying to debit has died, the bank would return the transaction with code R14. For transactions where R14 applies, the customer’s bank must return the transaction with code R14 within 2 banking days.

In this instance, you will not be able to continue to charge this customer until a new representative has been designated for them and you have received payment information for this new representative. To address R14, you will need to decide how you wish to proceed with this particular transaction—so this will vary on a case-by-case basis, and be dependent on a number of factors including whether or not your business has been notified of a new representative for the specific beneficiary in question.

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.