R17

What Is ACH Return Code R17?

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 R17, also known as "File Record Edit Criteria," is a standard code used in Automated Clearing House (ACH) transactions. It indicates that the entry in the ACH file has can’t be processed by the RDFI. This could include formatting errors, missing information, or other discrepancies that prevent the successful processing of the transaction.

In a 2019 update, Nacha expanded code R17 to also apply to suspicious or anomalous transactions, however, it still remains a fairly uncommon return code and in most cases, businesses should not expect to regularly encounter it. If an RDFI uses R17, they are required to include “QUESTIONABLE” as part of the description of the return. The customer’s bank must return the transaction with code R17 within 2 banking days.

How To Address ACH Return Code R17

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.

If you encounter R17, you can reach out to the receiving financial institution to see if they can provide any additional details about the return. In most cases, the best course of action is to re-enter all the relevant information and attempt your 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.