R10

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High-Priority Return Code

This is one of the most serious ACH return codes as it indicates the customer claims no relationship with your business or denies authorizing any transactions. The customer must provide a written statement under penalty of perjury to their bank, making this a formal legal declaration. Banks have up to 60 days to process this return.

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Error message: "Customer Advises Originator is Not Known to Receiver and/or Originator is Not Authorized by Receiver to Debit Receiver's Account."

What Causes ACH Return Code R10?

The R10 ACH return code means "Customer Advises Not Authorized" and indicates that a customer has formally told their bank they either don't recognize your business or never authorized any ACH transactions from your company. This is different from other authorization issues - R10 specifically means the customer claims no legitimate business relationship or authorization ever existed.

This return requires the customer to provide a written statement under penalty of perjury, making it a serious legal declaration. R10 can result from fraud, identity theft, business name recognition issues, or cases where the customer genuinely never provided authorization but someone initiated transactions using their account information.

Can You Retry R10 Payments?

You cannot retry R10 payments without first establishing legitimate customer authorization and resolving the underlying dispute. Since the customer has formally denied any relationship or authorization, any future transaction attempts without proper resolution could be considered fraudulent activity and result in severe penalties including loss of ACH processing privileges.

Common Causes

Customer doesn't recognize your business name on their statement

Fraudulent use of customer's account information

Customer genuinely never provided authorization for ACH transactions

Business name differs significantly from what customer expects to see

Transaction initiated without proper customer consent or agreement

Key Information

Return timeframe: Up to 60 calendar days

Requires customer's written statement under penalty of perjury

Cannot retry without resolving authorization dispute

Must immediately cease all transactions to that account

One of the most serious ACH return codes

How to Respond to an R10 Code

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An R10 return represents a serious authorization dispute requiring immediate cessation of all transactions and thorough investigation of the customer relationship and authorization documentation.

When Your Customer's Payment Fails

Immediately Stop All Transactions
‍Halt any scheduled or recurring payments to prevent additional violations and potential fraud accusations.
Review Authorization Documentation
‍Examine your records to verify you have proper written or electronic authorization for ACH transactions.
Contact Customer for Investigation
‍Reach out to understand if this is a recognition issue, fraud, or legitimate authorization dispute.
Consult Legal/Compliance Team
‍Given the serious nature of R10, consider consulting compliance experts before taking further action.

Email Template

Subject: Important: Transaction Authorization Inquiry

Hi [Customer Name],

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We received notice that you've reported an unauthorized transaction from our company. We take this very seriously and want to resolve this matter immediately.

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We have suspended all transaction activity on your account while we investigate. Could you please contact us at [phone number] so we can:

Review our authorization records with you
Understand if there's been a misunderstanding
Resolve any issues promptly

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If you don't recognize our business name or believe this is fraud, please let us know immediately so we can assist with the investigation.

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Thanks,

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[Your Company Name]

When Your Payment to Vendors Fails

An R10 return on vendor payments indicates the vendor is claiming they never authorized your business to debit their account. This represents a serious business relationship issue requiring immediate investigation and resolution.