R31

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High-Priority Return Code

This ACH return code is unique because it's optional rather than mandatory. R31 applies only to corporate transactions using CCD (Cash Concentration or Disbursement) and CTX (Corporate Trade Exchange) formats. The receiving bank has the discretion to return the transaction, but only if the originating bank agrees to accept the return. This provides flexibility in handling corporate payments when circumstances make return appropriate but not required.

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Error message: "The RDFI may return a CCD or CTX entry that the ODFI agrees to accept."

What Causes ACH Return Code R31?

The R31 ACH return code means "Permissible Return Entry (CCD and CTX only)" and indicates that the receiving bank has chosen to return a corporate transaction, with the originating bank's agreement. Unlike most ACH return codes that represent mandatory returns due to specific errors, R31 is discretionary - the receiving bank is permitted to return the transaction but is not required to do so.

R31 returns occur only with corporate payment formats: CCD (Cash Concentration or Disbursement) entries for basic corporate transfers, and CTX (Corporate Trade Exchange) entries that can include up to 9,999 addenda records with additional transaction details. This return provides flexibility for handling complex corporate payment situations where standard return codes may not apply.

Can You Retry R31 Payments?

You can potentially retry R31 payments, but first you must contact your customer to understand why the receiving bank returned the transaction and obtain proper authorization for an alternative payment method. Since this was a permissible return rather than an error-based return, the underlying issue may require a different approach or payment format.

Common Causes

Receiving bank exercised discretionary return option for corporate transactions

Account subject to legal action or restrictions

Transaction format issues with CCD or CTX entries

Improper entry formatting that doesn't meet bank standards

Corporate policy restrictions on certain types of payments

Key Information

Return timeframe: Not defined - determined by ODFI and RDFI agreement

Specific to CCD and CTX corporate transaction formats only

Discretionary return - not mandatory like most other return codes

Requires originating bank's agreement to accept the return

May indicate need for different payment approach or format

How to Respond to an R31 Code

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An R31 return indicates the receiving bank chose to return your corporate transaction with your bank's permission, requiring direct customer contact to determine the best alternative payment approach.

When Your Customer's Payment Fails

Contact Customer Immediately
Since this is a discretionary return, reach out to understand any special circumstances or requirements affecting their corporate account.
Verify Transaction Format
Confirm whether the CCD or CTX format was appropriate for this specific corporate payment and customer relationship.
Obtain Alternative Authorization
Get permission to process payment using a different account, method, or format that meets their bank's requirements.
Coordinate with Your Bank
Work with your financial institution to understand why they agreed to accept this return and what alternatives might work better.

Email Template

Subject: Payment Processing Issue - New Payment Method Needed

Hi [Customer Name],

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We received a return on your recent corporate payment that requires us to explore alternative processing options. This type of return indicates your bank has specific requirements or restrictions for corporate transactions.

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Could you please contact us to discuss the best way to process your payment? We may need to use a different payment format or account to ensure successful processing.

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This is not uncommon with corporate accounts, and we're happy to work with you to find the most suitable payment method for your business needs.

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Please call us at your earliest convenience so we can resolve this quickly.

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[Your Company Name]

When Your Payment to Vendors Fails

An R31 return on vendor payments means the vendor's bank exercised their option to return your corporate payment. This suggests there may be specific formatting requirements or restrictions on their corporate account that require alternative payment handling.

Contact the vendor immediately to understand any special payment requirements or restrictions
Verify whether CCD or CTX format was appropriate for this vendor relationship
Explore alternative payment methods such as ACH credit instead of debit, wire transfer, or check
Work with your bank to determine the most suitable corporate payment format for this vendor