ACH Reject/Return Codes
ACH returns can occur for various reasons, including insufficient funds in the customer’s account, closed accounts, invalid account numbers, or incorrect customer information. When an ACH payment is returned, funds did not transfer and an ACH Reject-Return Code identifies the reason for the failed payment.
What is an ACH return code?
An ACH reject return code is a three-character code that provides information about the specific reason why an ACH payment was returned. Each return code corresponds to a specific issue or problem that caused the return. These codes are standardized and used by banks and financial institutions to communicate the reason for the return.
The ACH return code helps the business understand why the payment was returned and take appropriate action to resolve the issue. It is important for businesses to familiarize themselves with the different ACH return codes and understand their meanings to efficiently handle returned payments.
What are some common ACH return codes?
There are numerous ACH return codes, each indicating a different reason for the return. Some common ACH return codes include:
– R01: Insufficient Funds: The customer’s account does not have enough funds to cover the payment.
– R02: Account Closed: The customer’s account has been closed, and the payment cannot be processed.
– R03: No Account/Unable to Locate Account: The customer’s account number provided is invalid or cannot be found.
– R10: Ineligible Transaction: The payment does not comply with the rules or regulations of the ACH network.
– R29: Corporate Customer Advises Not Authorized: The payment was not authorized by the customer’s company.
These are just a few examples of ACH return codes. There are many more codes, each with its own specific meaning, please see the glossary below. Understanding the ACH return codes helps businesses identify the issue and take appropriate action to resolve it.
ACH Reject-Return Codes Glossary
