R31

What Is ACH Return Code R31?

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 R31, also known as "Permissible Return Entry (CCD and CTX only)," is a standard code used in Automated Clearing House (ACH) transactions. R31 indicates that the RDFI is looking to return a CCD or CTX entry.

A Cash Concentration or Disbursement (CCD) entry is a payment format that refers to corporate credits and debits, specifically, and allows for secure transfers that can take place overnight. Corporate Trade Exchange (CTX) refers to a format that allows for a payment record with up to 9,999 addenda records on the transaction.

How To Address ACH Return Code R31

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.

When an ACH transaction is returned with ACH Return Code R31, it means that the return is permissible, and that whatever the specific reason for the return, it falls within the acceptable criteria as defined by the ACH rules. The return may be initiated for a wide variety of reasons, such as the receiver's account being subject to legal action, the entry being prohibited, or the entry being improperly formatted.

The RDFI must return a transaction with code R31 within 2 banking days. If you encounter R31, you should reach out directly to your customer, as they will need to provide you with authorization to debit or credit their account—or provide an alternate bank account or form of payment to process the transaction.

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.