R12

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High-Priority Return Code

This ACH return code occurs during bank mergers, acquisitions, or branch sales when customer accounts are transferred to a new financial institution. The old bank can no longer process transactions and must return them. This is typically a temporary situation during transition periods as banks update their systems and customer information.

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Error message: "A financial institution received an Entry to an account that has been sold to another financial institution."

What Causes ACH Return Code R12?

The R12 ACH return code means "Account Sold to Another DFI" and indicates that the customer's bank or branch has been sold to another Depository Financial Institution (DFI). This typically occurs during bank mergers, acquisitions, or when individual branches are sold to other financial institutions. The original bank can no longer process transactions for these accounts and must return them to the originating institution.

During transition periods, the acquiring bank may temporarily accept transactions using the old routing numbers to ease customer transitions. However, once this grace period ends, all transactions using outdated bank information will be returned with R12 codes until customers update their account details with the new institution's information.

Can You Retry R12 Payments?

You cannot retry R12 payments using the same bank information. You must obtain the customer's updated account and routing numbers from their new financial institution and create an entirely new transaction. Simply retrying with the old information will continue to result in R12 returns since the original bank no longer maintains the account.

Common Causes

Bank merger or acquisition affecting customer accounts

Individual branch sold to another financial institution

Customer's account transferred during corporate restructuring

Transition period ended for accepting old routing numbers

Customer hasn't updated their banking information after institutional changes

Key Information

Return timeframe: 2 banking days

Cannot retry with same account information

Must obtain new account and routing numbers from customer

Create new transaction rather than retrying old one

Temporary situation during bank transition periods

How to Respond to an R12 Code

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An R12 return indicates institutional changes requiring updated customer banking information. Focus on obtaining new account details from the customer's current financial institution.

When Your Customer's Payment Fails

Contact Customer Immediately
‍Reach out to explain that their bank has been sold or merged and you need updated account information.
Request New Banking Details
‍Ask for their new routing number, account number, and any other updated information from their current institution.
Verify Information Accuracy
‍Confirm the new details with a voided check or official bank documentation to prevent future errors.
Create New Transaction
‍Process a completely new transaction with the updated information rather than modifying the original.

Email Template

Subject: Banking Information Update Needed - Bank Transition

Hi [Customer Name],

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We received notice that your bank has undergone changes (merger, acquisition, or branch sale), and we can no longer process payments using your previous account information.

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To continue processing your payments smoothly, we'll need your updated banking details from your current financial institution:

New routing number
New account number
Any other relevant changes

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Could you provide a voided check or official documentation from your current bank? This ensures we have accurate information and prevents any future payment issues.

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Thanks,

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[Your Company Name]

When Your Payment to Vendors Fails

An R12 return on vendor payments means the vendor's bank has been sold or merged with another institution. This requires obtaining updated banking information to continue processing payments to the vendor.