R35

What Is ACH Return Code R35?

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 R35, also known as, “Improper Debit Entry,” is a standard code used in Automated Clearing House (ACH) transactions. This code indicates that a debit entry has been submitted improperly.

Debit entities are not universally permissible across accounts, so R35 can be triggered by a debit entry attempted against an account like a loan account, for example. The RDFI must return the transaction with code R35 within the next file delivery time following processing.

How To Address ACH Return Code R35

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 R35, you will unfortunately need to wait for the associated banking institutions to resolve this issue between them. If you need immediate payment from your customer, you will need to reach out to them directly for 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.