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ACH Returns Quick Reference
C
Written by Christina Valentin
Updated over 5 months ago

Return Codes

Category

Reason for Return

Return Code

Description

Entry Type

RDFI Deadline

Funds Availability

Insufficient Funds

R01

Available balance is not sufficient to cover the dollar value of the debit entry.

ALL

24 Hrs

Funds Availability

Uncollected Funds

R09

Sufficient book/ledger balance exists, but value of uncollected items brings available balance below amount of debit entry.

ALL

24 Hrs

Funds Availability

Account Frozen/Entry Returned Per OFAC Instruction

R16

Funds unavailable due to action by the RDFI or by legal action; or OFAC has instructed the RDFI or Gateway to return the entry.

ALL

24 Hrs

Account Rejects

Account Closed

R02

Previously active account has been closed.

ALL

24 Hrs

Account Rejects

No Account/Unable to Locate Account

R03

Account number structure is valid, but doesn't match individual identified in entry or is not an open account. (May not be used to return ARC, BOC or POP entries simply because they do not contain an individual name.)

ALL

24 Hrs

Account Rejects

Invalid Account Number

R04

Account number structure not valid. Edit of check digit or number of account digits failed.

ALL

24 Hrs

Account Rejects

Non-Transaction Account

R20

RDFI policies/regulations restrict activity to account indicated.

ALL

24 Hrs

Authorization

Unauthorized Debit To Consumer Account Using Corporate SEC Code

R05

A debit entry that was transmitted to a consumer account of the Receiver was not authorized by the Receiver. Written Statement is required.

CCD, CTX(consumer only)

60 Days

Authorization

Authorization Revoked by Customer

R07

Consumer who previously authorized entries has revoked authorization with the Originator. Written Statement is required.

PPD, TEL and WEB

60 Days

Authorization

Payment Stopped

R08

The Receiver has requested the stop payment of a specific ACH debit entry. Stop Payment form recommended.

ALL

24 Hrs

Authorization

Customer Advises Originator is Not Known to Receiver and/or Originator is Not Authorized by Receiver to Debit Receiver's Account

R10

Receiver advises that an entry is not authorized. Written Statement is required.

ARC, BOC, IAT, POP, POS, PPD, TEL, WEB

60 Days

Authorization

Customer Advises Entry Not in Accordance with Terms of the Authorization

R11

Authorization obtained, but error in payment (e.g. wrong amount; debit date before authorized; incomplete transaction; improper source document or exceeds reinitiation attempts). Written Statement is required.

ARC, BOC, IAT, POP, POS, PPD, TEL, WEB

60 Days

Authorization

Corporate Customer Advises Not Authorized

R29

Receiver has notified RDFI that corporate debit entry transmitted to a corporate account is not authorized.

CCD, CTX

24 Hrs

Authorization

Permissible Return Entry

R31

ODFI agrees to accept a return after the "24-hour" deadline of a corporate entry reported unauthorized.

CCD, CTX

Negotiated

Death

Representative Payee Deceased

R14

Representative Payee is deceased or unable to continue in that capacity; cease future payments. (Beneficiary may be entitled to future deposits through another account.) Used primarily for the return of federal government benefits.

Consumer Only

24 Hrs

Death

Beneficiary or Account Holder Deceased

R15

The beneficiary entitled to benefits or account holder (other than Representative Payee) is deceased; cease future payments. Used primarily for the return of federal government benefits.

Consumer Only

24 Hrs

Special Concern

Credit Entry Declined by Receiver

R23

Receiver declines transaction because amount is inaccurate, results in overpayment, account is in litigation or Originator is not known to the Receiver.

ALL CREDIT ENTRIES

24 Hrs (after Receiver notifies RDFI)

Special Concern

Return of XCK Entry

R33

RDFI determines at its discretion to return a Destroyed Check Entry.

XCK

60 Days

Erroneous Entries

Returned per ODFI's Request

R06

ODFI has requested RDFI to return an entry.

ALL

Negotiated

Erroneous Entries

File Record Edit Criteria/ Entry with Invalid Account Number Initiated Under Questionable Circumstances/ Return of Improperly-Initiated Reversal

R17

Fields edited by the RDFI cannot be processed. The field causing the error should be identified in the Addenda Information field of the Addenda Record. RDFI believes the transaction was initiated under questionable circumstances; 'QUESTIONABLE' should be identified in the Addenda Information field. The RDFI or Receiver has Identified a Reversing Entry as one that was importoperly intiated by the Originator or the ODFI.*Under the IRS Refund Return Opt-In Program, RDFIs can return suspicious or questionable tax refund credits using R17. If an RDFI participates in this program, it can return a tax refund credit for 60 days after the Settlement Date of the income tax refund.

ALL

24 Hrs*

Erroneous Entries

Invalid Company Identification

R21

Number used in the Company ID field is incorrect.

CIE

24 Hrs

Erroneous Entries

Invalid Individual Identification Number

R22

The ID number used to identify the account is not correct.

CIE, MTE

24 Hrs

Do's and Don'ts of ACH Returns

  • Do return ACH entries timely to meet required deadlines. For “24-hour” return reason codes, the ODFI must receive the return by opening of business on the second banking day after the Settlement Date of the original entry. Returns sent electronically on either the Settlement Date or the day after the Settlement Date may meet this deadline. For “60-day” returns, the ODFI must receive the return by the opening of business on the banking day following the sixtieth calendar day after the Settlement Date of the original entry.

  • Do contact an ODFI if an ACH entry was returned with the wrong return reason code or to ask if the ODFI will allow for the return of the original entry using return reason code “R06 — Returned per ODFI’s Request.”

  • Do obtain a letter of indemnification if an ODFI requested an entry be returned “R06 - Returned per ODFI’s Request.”

  • Do know that debit entries returned as “R01 - Insufficient Funds” or “R09 - Uncollected Funds” must be reinitiated within 180 days of the Settlement Date of the original entry.

  • Don’t return a debit because a Receiver is not pleased with the goods or services. Subsection 2.4.3 states the ODFI does not warrant the goods or services related to Entries. Any dispute over goods and services must be handled outside the ACH Network.

Dishonored Return Entries

What is a Dishonored Return Entry?

An ODFI has the right to dishonor a return entry received from the RDFI if the entry was found to be returned outside of the established return timeframes, or if the information in the return entry was incomplete or incorrect. Dishonored return entries must be transmitted within 5 banking days after the Settlement Date of the return entry and are identified through the use of Dishonored Return Reason Codes, which are listed below.

Return Code

DEFINITION

RDFI RESPONSE

SPECIAL CONSIDERATION

R61

Misrouted Return—Return was received by wrong financial institution due to incorrect routing number.

Return Original Entry Using Correct RTN

Obtain correct routing number from original entry detail. Since return may now be untimely, ODFI contact is suggested.

R62

Return of Erroneous or Reversing Debit—The use of the reversal process resulted in, or failed to correct, an unintended credit to the Receiver.

Contest as R77 or Accept

Verify whether both the erroneous entry and the related reversing entry were returned; or the funds related to the entry in error were not recoverable from the Receiver.

R67

Duplicate Return—More than one return entry has been sent for the same entry.

Contest as R75 or Accept

Verify whether return was a duplicate. If not, then contest as indicated. If a duplicate, accept the Dishonored Return.

R68

Untimely Return—Return entry did not meet return deadline.

Contest as R73 or Accept

Verify timeliness of return. If return was timely, contest as indicated. If return was untimely, accept the Dishonored Return.

R69

Field Errors—Return contained one or more input errors. Addenda Record indicates field(s) in error:01—Account Number 02—Trace Number 03—Amount 04—Individual ID 05—Transaction Code 06—Company ID 07—Effective Entry Date

Correct and Return as R74 or Contest as R76

Verify source of error(s) from original entry detail. Enter correct information in appropriate fields of Contested Dishonored Return and contest as R74. If no errors were found, contest as R76.

R70

Permissible Return Not Accepted/Return Not Requested—RDFI initiated a return as “R31—Permissible Return Entry” without ODFI permission or as “R06— Returned per ODFI’s Request” when the ODFI did not request such a return.

Contact ODFI Regarding Discrepancies

Use of R31 and R06 must be negotiated with the ODFI. Contact your Payments Association for clarification.

What is a Contested Dishonored Return Entry?

An RDFI may dispute a Dishonored Return entry received from the ODFI. Contested Dishonored Return entries must be transmitted within 2 banking days after the Settlement Date of the Dishonored Return entry and are identified by Contested Dishonored

Return Reason Codes (listed below). An ODFI may not contest a Contested Dishonored Return through the ACH Network. Any further action concerning the entry must be pursued outside of the ACH Network.

What is a Corrected Return Entry?

An RDFI receiving a Dishonored Return entry indicating the return entry contained incorrect information may transmit a Corrected Return entry. This must be done within 2 banking days of the Settlement Date of the Dishonored Return entry.

Return Code

DEFINITION

R71

Misrouted Dishonored Return—ODFI misrouted the Dishonored Return to the wrong RDFI (incorrect routing number).

R72

Untimely Dishonored Return—ODFI has not sent Dishonored Return Entry by return deadline.

R73

Timely Original Return—RDFI claims the original return was sent within the timeframe designated in the ACH Rules.

R74

Corrected Return—RDFI is correcting a return which was dishonored as “R69—Field Errors” because it contained incomplete or incorrect information.

R75

Original Return Not a Duplicate—RDFI claims original return entry is not a duplicate of an entry previously returned by the RDFI, used to dishonor return reason code “R67—Duplicate Return.”

R76

No Errors Found—RDFI claims the original return entry did not contain the errors indicated by the ODFI in the Dishonored Return entry “R69—Field Errors.”

R77

Non-Acceptance of R62 Dishonored Return—RDFI returned both the erroneous entry and related reversing entry; or RDFI was unable to recover the funds related to the entry in error from the Receiver.

ACH Operator Exceptions

What is an ACH Operator Reject?

When an ACH Operator receives an entry or entry data that does not meet the acceptance criteria of ACH record formatting specifications, it will either return the entry or reject the entire batch or file containing the entry.

Fields are subject to edit by the ACH Operator and contain data critical for posting of an ACH entry. Rejected entries are identified through the use of ACH Operator Return Reason Codes, which are listed below.

OPERATOR REJECT CODES

DESCRIPTION

REASON(S) FOR USE OF THE REJECT CODE

R13

Invalid ACH Routing Number

Entry contains an RDFI or Gateway Identification that is not a valid ACH Routing Number.

R18

Improper Effective Entry Date

Effective Entry Date of a credit entry is beyond the 2 banking day processing window. Effective date of a debit entry is beyond the 1 banking day processing window.

R19

Amount Field Error

Amount field is non-numeric; is not zero in non-valued entry (i.e., prenote, DNE, ENR, NOC, Refused NOC or zero dollar entry); is zero in a valued ACH transaction format; or is greater than $25,000 for ARC, BOC and POP entries.

R25*

Addenda Error

An error(s) exists in the Addenda Record in regard to the application of codes, incorrect values, addenda content or required formatting standards (i.e., ANSI or NACHA-endorsed banking convention).

R26*

Mandatory Field Error

An error exists in a field that is mandatory for ACH processing.

R27*

Trace Number Error

Original Entry Trace Number is not present in the Addenda Record of an automated return or the trace number disagrees with the previous entry.

R28

Routing Number Check Digit Error

The check digit for a routing number is invalid.

R30

RDFI Not Participant in Check Truncation Program

A check truncation entry is being directed to a non-participating RDFI. Routing number is incorrect for a check truncation entry.

R32

RDFI Non-Settlement

RDFI is unable to settle the entry.

R34

Limited Participation DFI

RDFI’s participation has been limited by a federal or state supervisor.

R35

Return of Improper Debit Entry

A debit entry was originated that is not permitted for a Customer-Initiated Entry (CIE) or a loan transaction.

R36

Return of Improper Credit Entry

A credit entry was originated that is not permitted for ARC, BOC, POP, RCK, TEL or XCK.

Rejected entries have not been delivered to the intended financial institution or Receiver. Original entries or returns must be reinitiated with the correct information. Deadlines are not extended for rejected entries.

*Refer to Appendix 4 of the ACH Rules for a detailed listing of error conditions

Notifications of Change

What is a Notification of Change (NOC)?

An RDFI may send an NOC to an ODFI for the purpose of identifying incorrect information contained in an ACH entry and providing correct data for use in future entries. Correct data is contained in the change field(s) of the NOC and is sent using the Standard Entry Class (SEC) code COR. In transmitting an NOC, the RDFI’s warranty supersedes and renders inoperative any similar warranty of the ODFI. NOCs must be transmitted within 2 banking days of the Settlement Date of the entry to which the NOC relates and are identified through the use of NOC codes, which are listed below.

FIELDS CONTAINING INCORRECT INFORMATION

NOC CODE

DESCRIPTION OF ERROR

CHANGE FIELD ENTRY PROCEDURE

Account Number

C01

Account number is incorrect or is formatted incorrectly.

Enter correct account number in Change Field 1.

Routing Number

C02

Due to merger or consolidation, a once valid routing number must be changed.

Enter correct routing number in Change Field 1.

Routing Number and Account Number

C03

Due to a merger or consolidation, the routing number must be changed and account number structure is no longer valid.

Enter correct routing number in Change Field 1, and enter correct account number in Change Field 2.

Transaction Code

C05

Transaction Code is incorrect and is causing entry to be routed to the wrong type of account (checking, savings, general ledger, or loan).

Enter correct Transaction Code* in Change Field 1.

Account Number and Transaction Code

C06

Account number is incorrect and transaction is being routed to the wrong type of account (checking, savings, general ledger, or loan).

Enter correct account number in Change Field 1and correct Transaction Code* in Change Field 2.

Routing Number, Account Number and Transaction Code

C07

Due to a merger or consolidation, a routing number must be changed, account number structure is no longer valid and the transaction should be routed to another type of account.

Enter correct routing number in Change Field 1, enter correct account number in Change Field 2, and enter correct Transaction Code* in Change Field 3.

Incorrect Receiving DFI Identification

C08

Receiving DFI ID in an IAT is incorrect.

Enter correct Receiving DFI ID in first 34 positions of the Corrected Data Field.

Incorrect Individual ID Number or Incorrect Receiver ID Number

C09

Individual ID number is incorrect.

Change Fields are left blank. Verify Standard Entry Class Code; use for CIE, IAT, MTE, POS and SHR entries only

Addenda Format Error

C13

Entry Detail Record was correct, but information in the Addenda Record was unclear/formatted incorrectly (i.e., addenda information is not formatted in ANSI or NACHA-endorsed banking conventions).

Change Fields are left blank. (Correction to addenda devised by Originator and ODFI.)

Incorrect SEC Code for Outbound International Payment

C14

Used by Gateway to let ODFI know that future entries should be identified as IAT.

IAT in the first three positions of the Corrected Data Field identifies the payment as international. Further payments must use the IAT format.

*Refer to Appendix 3 of the ACH Rules for a list of Transaction Codes.

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