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ACH Return Codes
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 R02. 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 | 60 Calendar Days |
| 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.
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ACH
ACH (Automated Clearing House) is a payment processing network that’s used to send money electronically between banks in the United States.