R27

What Is ACH Return Code R27?

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 R27, also known as "Trace Number Error," is another standard code used in Automated Clearing House (ACH) transactions. This code is used to indicate that the trace number in the ACH entry is either missing or contains an error. The trace number is a unique, a 15-digit number associated with each ACH transaction that is used for tracking and reconciling transactions.

How To Address ACH Return Code R27

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 failed to input a trace number for this transaction, the bank would return the transaction with code R27. The RDFI must return the transaction with code R27 within the next file delivery time following processing.

If you encounter R27, you should review the transaction details to see if the trace number is missing or incorrect. Once you have identified and corrected the issue with the trace number, you can submit 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.