R29

What Is ACH Return Code R29?

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 R29, also known as "Corporate Customer Advises Not Authorized," is a standard code used in Automated Clearing House (ACH) transactions. This return code indicates that the account holder has notified their bank that the originator of the transaction is not authorized to debit from their account. The RDFI must return the transaction with code R29 within 2 banking days.

How To Address ACH Return Code R29

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 R29, you should first ensure that you do not have any recurring transactions set up for this customer and if you do, stop them immediately. The next step is to reach out to your customer to understand why they issued a cancellation or revoked authorization for this transaction, so that you can remediate the issue—they may also be able to provide you with an alternate form of payment.

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.