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R21
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.
What Is ACH Return Code R21?
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 R21, also known as "Invalid Company Identification," is a standard code used in Automated Clearing House (ACH) transactions. It indicates that the entry in the ACH file contains an invalid or incorrect company identification number. This return code is generally caused by errors in the transaction, outdated company identification numbers, or using an incorrect identification number for the transaction.
How To Address ACH Return Code R21
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 you have incorrectly inputted the company identification number for this customer, the bank would return the transaction with code R21. The RDFI must return the transaction with code R21 within 2 banking days.
If you encounter R21, you can try the following to address is:
- Double check your transaction for errors and, if found, correct and then attempt the transaction again
- Contact your customer to find out if there is an updated company ID number you should use or to obtain an alternate form of payment, if necessary
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.
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