R32

On This Page

High-Priority Return Code

This ACH return code indicates a serious issue with the receiving bank's ability to participate in ACH processing. Unlike account-specific problems, R32 means the entire financial institution cannot settle ACH transactions due to operational, financial, or regulatory constraints. This affects all customers at that institution and typically requires finding alternative banking arrangements since the problem is at the institutional level rather than the account level.

‍

Error message: "The RDFI is not able to settle the entry."

What Causes ACH Return Code R32?

The R32 ACH return code means "RDFI Non-Settlement" and indicates that the Receiving Depository Financial Institution cannot settle the ACH transaction due to institutional-level issues. This is not a problem with the customer's specific account, but rather a systemic issue affecting the bank's ability to process any ACH transactions.

R32 returns occur when banks face operational difficulties, financial constraints, regulatory sanctions, or have been suspended from ACH network participation. The institution may be experiencing liquidity problems, compliance issues, or may have had their ACH privileges temporarily or permanently revoked by regulators or NACHA.

Can You Retry R32 Payments?

You cannot successfully retry R32 payments to the same financial institution until the underlying institutional issues are resolved. Since this return indicates the receiving bank cannot settle ACH transactions at all, you must obtain updated banking information from your customer directing payments to a different, operational financial institution.

Common Causes

Receiving bank suspended from ACH network participation

Financial institution experiencing liquidity or operational difficulties

Regulatory sanctions limiting the bank's transaction processing abilities

Bank closure or merger affecting ACH processing capabilities

Compliance issues preventing the institution from settling transactions

Key Information

Return timeframe: Next file delivery time following processing

Affects all customers at the receiving institution, not just specific accounts

Cannot retry until customer provides alternative banking information

Institutional-level problem rather than account-specific issue

May indicate serious financial or regulatory problems with the receiving bank

How to Respond to an R32 Code

‍

An R32 return indicates the receiving bank cannot process ACH transactions at all, requiring immediate customer contact to obtain alternative banking information from a different financial institution.

When Your Customer's Payment Fails

Stop All Transactions to This Bank
Immediately halt any pending or scheduled payments to this financial institution as they cannot process ACH settlements.
Contact Customer Urgently
Reach out to explain that their bank cannot process ACH transactions and request updated banking information from a different institution.
Verify Alternative Bank Details
Ensure the new banking information is from an operational financial institution that can process ACH transactions.
Monitor for Institution Updates
Check if the receiving bank resolves their settlement issues, though this may take considerable time.

Email Template

Subject: Payment Processing Issue - New Payment Method Needed

Hi [Customer Name],

‍

We've encountered an issue processing your payment due to operational problems at your bank that prevent them from handling ACH transactions. This affects all customers at your financial institution, not just your specific account.

‍

To ensure uninterrupted service, we need updated banking information from a different financial institution that can process electronic payments. Please provide:

Bank name and routing number
Account number
Account type (checking/savings)

‍

This situation is beyond our control and affects your bank's ability to process any electronic payments. We'll process your payment immediately once we receive the new banking details.

‍

Please respond as soon as possible to avoid any service disruptions.

‍

[Your Company Name]

When Your Payment to Vendors Fails

An R32 return on vendor payments means the vendor's bank cannot settle ACH transactions due to institutional problems. This affects the vendor's ability to receive any electronic payments, requiring immediate communication about alternative payment arrangements.

Contact the vendor immediately to explain their bank cannot process ACH transactions
Request alternative banking information from a different financial institution
Consider alternative payment methods like wire transfers or checks if needed urgently
Verify the vendor's new banking institution is operational before processing payments