ACH return codes

ACH Return Codes

A complete list of ACH return codes - what they mean, why payments fail, and how to resolve each issue.

Understanding ACH Return Codes

Automated Clearing House (ACH) return codes are standardized responses that indicate why an ACH transaction was rejected or returned. These codes are essential for businesses that process electronic payments, as they provide specific information about transaction failures and help identify solutions.

When an ACH transaction fails, the receiving financial institution (RDFI) assigns a specific return code to communicate the reason back to the originating financial institution (ODFI). Each code has a unique meaning and requires different actions to resolve the issue.

For businesses processing ACH payments, understanding these codes is crucial for maintaining healthy cash flow, reducing payment failures, and improving customer relationships. This comprehensive guide covers all ACH return codes established by Nacha (National Automated Clearing House Association), the organization that governs the ACH Network.

Why ACH Return Codes Matter

ACH return codes serve several important purposes in the payment ecosystem:

Problem identification
They pinpoint exactly why a transaction failed, eliminating guesswork.
Compliance
Understanding return codes helps businesses comply with Nacha rules and regulations.
Process improvement
Analyzing patterns in return codes can help optimize payment processes.
Customer service
Knowing the specific reason for a failed payment allows for better communication with customers.
Risk management
Certain return codes may indicate fraud or higher-risk accounts.

Latest articles and guides

Code
Title
Error Message
R01
Insufficient Funds
The available and/or cash reserve balance is not sufficient to cover the dollar value of the debit entry.
R02
Account Closed
A previously active account has been closed by action of the customer or the RDFI.
R03
No Account/Unable to Locate Account
The account number structure is valid and it passes the check digit validation, but the account number does not correspond to the individual identified in the Entry, or the account number designated is not an open account.
R04
Invalid Account Number
The account number structure is not valid.
R05
Unauthorized Debit to Consumer Account Using Corporate SEC Code
A CCD or CTX debit entry was transmitted to a consumer account of the receiver and was not authorized by the receiver.
R06
Returned per ODFI's Request
The RDFI has returned the entry at the request of the ODFI.
R07
Authorization Revoked by Customer
The RDFI's customer (the Receiver) has revoked the authorization previously provided to the Originator for this particular transaction.
R08
Payment Stopped
The receiver of a recurring debit transaction has stopped payment on a specific ACH debit.
R09
Uncollected Funds
Sufficient book or ledger balance exists to satisfy the dollar value of the transaction, but the dollar value of transactions in the process of collection (i.e., uncollected checks) brings the available and/or cash reserve balance below the dollar value of the debit entry.
R10
Customer Advises Originator is Not Known to Receiver and/or Originator is Not Authorized by Receiver to Debit Receiver's Account.
Customer Advises Originator is Not Known to Receiver and/or Originator is Not Authorized by Receiver to Debit Receiver's Account.
R11
Customer Advises Entry Not in Accordance with the Terms of the Authorization
Customer Advises Entry Not in Accordance with the Terms of the Authorization.
R12
Account Sold to Another DFI
A financial institution received an Entry to an account that has been sold to another financial institution.
R13
Invalid ACH Routing Number
Entry contains a receiving DFI identification or gateway identification that is not a valid ACH routing number.
R14
Representative Payee Deceased or Unable to Continue in That Capacity
The representative payee is a person either deceased or no longer able to continue in original capacity (i.e. legally incapacitated adults or minors), while the beneficiary is not deceased.
R15
Beneficiary or Account Holder Deceased
(1) The beneficiary is deceased. The beneficiary may or may not be the account holder; or (2) The account holder (acting in a non-representative payee capacity) is an owner of the account and is deceased.

Helpful Tools & Resources

ACH Authorization Form Generator

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Free Invoice Template

Professional invoice templates with ACH payment instructions

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ACH Return Email Templates

Pre-written emails to send when you receive a return

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