Anchorage Digital Selects Modern Treasury to Power Money Movement Infrastructure.Learn more →
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. For example, 'R04' indicates that an invalid account number was provided. In response, the ACH network returns a payment to the originating party if it fails to complete the request. Payments returned in this way are typically referred to as ACH Returns. ACH return codes are standardized and maintained by NACHA, the governing body for the ACH network.
How do ACH Return Codes work in practice?
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, let’s say a consumer's account is debited for a streaming service subscription without their authorization. In that scenario, the consumer's bank has up to 60 days after the payment has settled to return the payment to the company's bank with the ACH return code R05.
Now, let’s take a different example. Let's say the consumer has provided the streaming service with debit authorization but doesn't have enough funds in their account to cover the transaction. In this case, their bank has up to 2 days after settlement to return the payment to the streaming service with the code R01. Failure to do so within 2 days will make the consumer's bank liable for the funds.
ACH Return codes are constantly evolving, with NACHA clarifying and updating existing codes and adding new ones on a regular basis. At the time of writing, the most recent update involved repurposing the return code, R11. Now, R11 will be used when there's an error with a received payment. In this case, the error would be reported by someone who has received a payment for an incorrect amount of money or received a payment on the wrong date.
ACH Return Codes
There are currently 85 distinct ACH return codes. The most common of which are:
| Code | Title | Account Type | Time Frame |
|---|---|---|---|
R01 | Insufficient Funds | Consumer or Non-Consumer | 2 Banking Days |
R02 | Account Closed | Consumer or Non-Consumer | 2 Banking Days |
R03 | No Account / Unable to Locate Account | Consumer or Non-Consumer | 2 Banking Days |
R04 | Invalid Account Number Structure | Consumer or Non-Consumer | 2 Banking Days |
R05 | Unauthorized Consumer Debit using Corporate SEC Code | Consumer | 60 Calendar Days |
R06 | ODFI Requested Return | Consumer or Non-Consumer | Undefined |
R07 | Customer Revoked Authorization | Consumer | 60 Calendar Days |
R08 | Payment Stopped | Consumer or Non-Consumer | 2 Banking Days |
R09 | Uncollected Funds | Consumer or Non-Consumer | 2 Banking Days |
R10 | Originator not known and/or not authorized to Debit Receiver’s Account | Consumer; Non-Consumer for ARC, BOC, IAT, or POP. | 60 Calendar Days |
The other return codes, which are less common, include:
| Code | Title | Account Type | Time Frame |
|---|---|---|---|
R11 | Customer advises not within Authorization Terms | Consumer; Non-Consumer for ARC, BOC, POP, and IAT | 60 Calendar Days |
R12 | Account Sold to Another DFI | Consumer or Non-Consumer | 2 Banking Days |
R13 | Invalid ACH Routing No. | Consumer or Non-Consumer | Next File Delivery Time Following Processing |
R14 | Representative Payee Deceased | Consumer or Non-Consumer | 2 Banking Days |
R15 | Beneficiary / Account Holder Deceased | Consumer | 2 Banking Days |
R16 | Account Frozen / Returned per OFAC | Consumer or Non-Consumer | 2 Banking Days |
R17 | File Record Edit Criteria / Suspicious Entry with Invalid Account No. / Return of Improperly-Initiated Reversal | Consumer or Non-Consumer | 2 Banking Days |
R18 | Improper Effective Date | Consumer or Non-Consumer | Next File Delivery Time Following Processing |
R19 | Amount Field Error | Consumer or Non-Consumer | Next File Delivery Time Following Processing |
R20 | Non-Transaction Account | Consumer or Non-Consumer | 2 Banking Days |
R21 | Invalid Company ID | Non-Consumer | 2 Banking Days |
R22 | Invalid Individual ID | Consumer or Non-Consumer | 2 Banking Days |
R23 | Receiver Refused Credit | Consumer or Non-Consumer | RDFI must transmit Return upon receipt of Refusal |
R24 | Duplicate Entry | Consumer or Non-Consumer | 2 Banking Days |
R25 | Addenda Error | Consumer or Non-Consumer | Next File Delivery Time Following Processing |
R26 | Mandatory Field Error | Consumer or Non-Consumer | Next File Delivery Time Following Processing |
R27 | Trace Number Error | Consumer or Non-Consumer | Next File Delivery Time Following Processing |
R28 | Routing No. Check Digit Error | Consumer or Non-Consumer | Next File Delivery Time Following ProcessingNext File Delivery Time Following Processing |
R29 | Not Authorized by Corporate Customer | Non-Consumer | 2 Banking Days |
R30 | RDFI not in Check Truncation Program | Consumer or Non-Consumer | Next File Delivery Time Following Processing |
R31 | Permissible Return (CCD and CTX only) | Non-Consumer | Undefined |
R32 | RDFI Non-Settlement | Consumer or Non-Consumer | Next File Delivery Time Following Processing |
R33 | Return of XCK | Consumer or Non-Consumer | 60 Calendar Days |
R34 | Limited Participation DFI | Consumer or Non-Consumer | Next File Delivery Time Following Processing |
R35 | Improper Debit | Consumer or Non-Consumer | Next File Delivery Time Following Processing |
R36 | Improper Credit | Consumer or Non-Consumer | Next File Delivery Time Following Processing |
R37 | Source Document Presented | Consumer or Non-Consumer | 60 Calendar Days |
R38 | Stop Payment on Source Document | Consumer or Non-Consumer | 60 Calendar Days |
R39 | Improper Source Document | Consumer or Non-Consumer | 2 Banking Days |
R40 | Return of ENR | ||
R41 | Invalid Transaction Code | N/A | N/A |
R42 | Routing No. / Check Digit Error | N/A | N/A |
R43 | Invalid DFI Account No. | N/A | N/A |
R44 | Invalid Individual ID No. | N/A | N/A |
R45 | Invalid Individual / Company Name | N/A | N/A |
R46 | Invalid Representative Payee Indicator | N/A | N/A |
R47 | Duplicate Enrollment | N/A | N/A |
R50 | State Law Affecting RCK Acceptance | N/A | N/A |
R51 | Ineligible / Improper Item Related to RCK | ||
R52 | Stop Payment on Item Related to RCK | Consumer | 60 Banking Days |
R53 | Item and RCK Presented for Payment | Consumer | 60 Calendar Days |
R61 | Misrouted Return | Consumer | 60 Calendar Days |
R62 | Erroneous / Reversing Debit | Consumer | 5 business days of return entry |
R67 | Duplicate Return | ||
R68 | Untimely Return | Consumer or Non-Consumer | ODFI must transmit Return within 5 Bnkg. Days |
R69 | Field Error | Consumer or Non-Consumer | ODFI must transmit Return within 5 Bnkg. Days |
R70 | Permissible Return Not Accepted / Not Requested by ODFI | Consumer or Non-Consumer | ODFI must transmit Return within 5 Bnkg. Days |
R71 | Misrouted Dishonored Return | Consumer or Non-Consumer | ODFI must transmit Return within 5 Bnkg. Days |
R72 | Untimely Dishonored Return | Consumer or Non-Consumer | ODFI must transmit Return within 5 Bnkg. Days |
R73 | Timely Original Return | Consumer or Non-Consumer | ODFI must transmit Return within 5 Bnkg. Days |
R74 | Corrected Return | ||
R75 | Return Not Duplicate | Consumer or Non-Consumer | ODFI must transmit Return within 5 Bnkg. Days |
R76 | No Errors Found | Consumer or Non-Consumer | Contested Return must be transmitted within 2 Bnkg. Days |
R77 | Non-Acceptance of R62 | Consumer or Non-Consumer | Contested Return must be transmitted within 2 Bnkg. Days |
R80 | IAT Coding Error | Consumer or Non-Consumer | Contested Return must be transmitted within 2 Bnkg. Days |
R81 | Non-Participant in IAT Program | Consumer or Non-Consumer | Contested Return must be transmitted within 2 Bnkg. Days |
R82 | Invalid Foreign RDFI Identification | Consumer or Non-Consumer | Contested Return must be transmitted within 2 Bnkg. Days |
R83 | Foreign RDFI Unable to Settle | Consumer or Non-Consumer | Contested Return must be transmitted within 2 Bnkg. Days |
R84 | Not Processed by Gateway | ||
R85 | Incorrectly Coded Outbound Int’l Payment | Consumer or Non-Consumer | 2 Banking Days |
This list will be continually updated as NACHA updates their operating rules.
Modern Treasury makes it really easy to initiate a return with the appropriate return code and automates linking the return to the original payment. Learn how to return a payment using our API with this guide.
Learn
Everything you need to know about the payment rails that power the world’s economy, from ACH and wires to RTP, FedNow, and more.
ACH credits and debits are two kinds of ACH transactions. Whereas a credit involves depositing, or “pushing,” funds into a bank account, for a debit, funds are withdrawn, or “pulled,” from an account.
The two kinds of financial institutions in the ACH network are ODFIs (Originating Depository Financial Institution) and RDFIs (Receiving Depository Financial Institutions).
US companies moving money internationally will likely weigh the pros and cons of SWIFT vs. Global ACH when it comes to attributes like speed and cost.
The Clearing House (TCH) is a banking association and payments company owned by 20 of the world’s largest commercial banks.
For business-to-business (B2B) companies, embedded payments integrate payment processing directly into software platforms
ACH (Automated Clearing House) is a payment processing network that facilitates electronic transfers between banks in the United States. It enables automated electronic debiting and crediting of checking and savings accounts. ACH payments work by batching transactions together, which are then processed at scheduled daily intervals.
A return is a credit or debit entry initiated by the Receiving Depository Financial Institution (RDFI) that returns a previously originated payment to the Originating Depository Financial Institution (ODFI).
ACH return codes identify the reason an ACH payment was returned by the recipient's bank. They make it easier to spot and resolve payment failures.
An ACH reversal refers to an erroneous ACH payment that a payment originator requests to take back, or reverse.
Payment rails are the underlying systems and networks that facilitate the movement of funds between parties in financial transactions.
Pix is Brazil’s instant payment platform that launched on November 16, 2020. Created and managed by the Central Bank of Brazil, Pix enables fast payments and transfers at any time, year-round.
A Standard Entry Class or SEC code is a three letter code that describes how a payment was authorized by the consumer or business receiving an ACH transaction.
A SWIFT code, also known as a SWIFT ID or Bank Identifier Code (BIC), is a unique 8-11 character code assigned to a bank for SWIFT wire transfers.
SWIFT payments or international wires are global payments made through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network.
ACH (Automated Clearing House) is a payment processing network that’s used to send money electronically between banks and financial institutions in the United States.
The Clearing House Interbank Payments System, or CHIPS is the largest private sector USD clearing system for wire transfers.
Electronic check presentment (ECP) is the process of electronically submitting a check to a bank for payment.
An electronic funds transfer (EFT), also known as a direct deposit, is the digital transfer of money between bank accounts. As digital transfers, they reduce the need for manual input and paper documents.
FedACH is the automated clearing house (ACH) service of the Federal Reserve Banks.
Part of the FedACH system, FedGlobal ACH offers low-cost and efficient cross-border ACH payments.
FedNow is a new payment rail that enables faster bank payments for financial institutions of any size, in any community, 365 days of the year.
Fedwire Funds Services, commonly known as Fedwire, is a real-time gross settlement transfer system that allows participating financial institutions to send and receive same-day fund transfers.
Fiat money is a form of currency issued by a government and declared legal tender, though not backed by a commodity.
Global ACH can help companies move money from US-domiciled accounts across borders using local rails. Learn how and when to use this payment rail.
The National Electronic Funds Transfer (NEFT) is a centralized payment system that facilitates transfers between certain bank accounts across India.
The National Automated Clearing House Association (Nacha) is responsible for overseeing the Automated Clearing House (ACH) Network, which is used to send money electronically between banks throughout the United States.
RTP (Real-Time Payments) is a payment processing network used to send money electronically between banks in the United States. It transfers funds between two bank accounts instantaneously and is available year round.
A Request for Payment (RFP) is an ACH Network message that can be used by businesses to send electronic invoices to their customers.
Same-Day ACH is an improvement to the ACH network that allows the processing of credit, debit, and return transactions several times a day.
Wire fraud is a serious criminal offense that uses electronic or interstate communications methods to defraud someone out of money or property.
A take rate refers to the fees online marketplaces (such as Amazon or eBay) or third-party service providers (such as PayPal) collect for enabling third-party transactions.
A wire transfer is an electronic payment made through a global network, allowing for fast, irreversible, foreign or domestic electronic money transfers.
ACH APIs enable companies with high transaction volumes to write software that automates payments over the ACH network.
An ACH credit refers to the process of electronically depositing, or “pushing,” funds into a bank account using ACH.
In an ACH debit, funds are electronically withdrawn, or “pulled,” from a bank account using ACH.
A Notification of Change (NOC) is used to notify the sender of an ACH payment to correct or change information related to a customer’s bank account.
A pre note or prenotification is a zero dollar payment to validate the account and routing details of a bank account before debiting or crediting it.
An International ACH Transfer—also known as Global ACH—is an ACH payment made cross-border from a US-domiciled account.
The issuer identification number (IIN) is the first eight or nine digits on a payment card tied to the financial institution that issued the card.
Originally known as Bankers’ Automated Clearing System (BACS), BACS Payment Schemes Limited clears and settles direct debit, BACS direct credit, and current account switch service in the United Kingdom.
The Bulk Electronic Clearing System (BECS) is a streamlined electronic payment method used to process low-value, bulk transactions in Australia and New Zealand.
The Faster Payments Service (FPS) is a banking service in the United Kingdom. The FPS was instituted in order to reduce payment times between accounts held by different customers.
The Single Euro Payments Area (SEPA) is a system of payment schemas that standardizes cashless transactions in euros.
Unified Payments Interface (UPI) is a real-time payments system for mobile applications designed and launched by the National Payments Corporation of India.