ACH Payment Returns

ACH Payment Returns

When a payment is made through the ACH Network, funds from the customer’s bank account are not immediately set aside to cover the transaction. Because the ACH system processes transactions in batches rather than “real time”, funds do not clear through the Federal Reserve (http://www.federalreserve.gov) until midnight. Organizations that use ACH (http://www.nationalach.com/services/ach-echeck-processing/) to process payments will have some returned transactions.

Below listed are some common return codes associated with ACH transactions.

R01 Insufficient Funds Not enough money is available in the customer’s bank account to cover the payment. Keep in mind that even if a bank account is confirmed for available funds at the time of purchase, the money may not still be there when the transaction clears the Fed at midnight.
R02 Account Closed The account used for the purchase is closed.
R03 No Account/Unable to Locate Account The account used for the purchase cannot be identified
R04 Invalid Account Number The account number does not match the number of digits necessary for a specific account. .
   
R06 Returned per ODFI’s Request ODFI requested the RDFI return the ACH entry. 
R07 Authorization Revoked by Customer The customer has revoked the transaction. This is similar to a “chargeback” in a card transaction.
R08 Payment Stopped or Stop Payment on Item Customers can stop payment of recurring ACH transactions.
R09 Uncollected Funds Sufficient ledger balance exists to satisfy the amount of the transaction. However, but the dollar value of transactions in the process of collection (i.e., uncollected checks) brings the available balance below the dollar value of the transaction. .
R10 Customer Advises Not Authorized; Item Is Ineligible, Notice Not Provided, Signatures Not Genuine, or Item Altered The customer has advised that the originator was not authorized to debit the account or that there was fraud involved.
     
R12 Bank Branch sold Because the receiving bank no longer maintains the account, it is unable to post the entry, which is then returned to the originating bank.
R13 Receiving not qualified to participate Self-explanatory
R14 Representative Payee Deceased or Unable to Continue in that Capacity The representative payee is a person or institution authorized to accept transactions on behalf of others, such as legally incapacitated adults or minor children.  If the representative is dead or unable to continue in the function, the transaction is returned.
R15 Beneficiary or Account Holder Deceased The beneficiary or account hold is dead.
R16 Account Frozen The funds in the account are unavailable due to specific action taken by the receiving bank or by legal action.
R17 File Record Edit Criteria (Specify) If the entry cannot be processed by the receiving bank, the field(s) causing the processing error must be identified in the addenda record information field of the return.
R20 Non-Transaction Account Often used if the entry is drawn on a credit union, thrift bank, or other financial institution that doesn’t participate in the ACH network.
R21 Invalid Company Identification The identification number used in the Company Identification Field is not valid.  This return is associated with commercial rather than consumer transactions.
R22 Invalid Individual ID Number The number with which the originating bank isidentified is not correct.
     
R24 Duplicate Entry The transaction has been sent more than one time.
R29 Corporate Customer Advises Not Authorized The originator of a given transaction has not been authorized to debit the receiver’s account.

For more information on ACH processing contact info@nationalach today.