R36

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High-Priority Return Code

This ACH return code indicates that a credit entry was attempted using a Standard Entry Class (SEC) code that only permits debit transactions. Unlike account-specific issues, R36 represents a fundamental formatting violation where certain transaction types like ARC, BOC, POP, RCK, TEL, and XCK are designed exclusively for debit entries. The only exception is for reversing entries used to correct previous transactions.

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Error message: "ACH credit entries are not permitted for use with ARC, BOC, POP, RCK, TEL, and XCK (except in the case of reversing entries)."

What Causes ACH Return Code R36?

The R36 ACH return code means "Return of Improper Credit Entry" and indicates that a credit transaction was attempted using a Standard Entry Class (SEC) code that doesn't support credit entries. Specific SEC codes like ARC (Accounts Receivable Conversion), BOC (Back Office Conversion), POP (Point of Purchase), RCK (Re-presented Check), TEL (Telephone), and XCK (Destroyed Check) are designed exclusively for debit transactions.

R36 returns occur when there's a mismatch between the transaction direction (credit vs. debit) and the SEC code's capabilities. These specialized transaction types were created for specific scenarios like check conversions or telephone authorizations where only debit transactions make sense, and attempting to send credits using these codes violates NACHA regulations.

Can You Retry R36 Payments?

You can retry R36 payments after correcting the transaction format. You must either change to an appropriate SEC code that supports credit entries (such as CCD, PPD, or CTX) or switch the transaction to a debit entry if that matches your intended payment direction and authorization.

Common Causes

Used ARC, BOC, POP, RCK, TEL, or XCK SEC codes with credit entries

Incorrect transaction direction selection in payment processing system

Wrong SEC code chosen for the type of payment being processed

System configuration error mixing credit format with debit-only SEC codes

Attempting to reverse a transaction using incorrect SEC code format

Key Information

Return timeframe: Next file delivery time following processing

Cannot be resolved by merchants alone - requires banking institution coordination

Affects both consumer and non-consumer accounts

Exception exists only for reversing entries to correct previous transactions

Solution requires changing SEC code or transaction direction

How to Respond to an R36 Code

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An R36 return indicates a formatting violation where the SEC code doesn't support credit entries, requiring correction of either the transaction type or direction before reprocessing.

When Your Customer's Payment Fails

Review Transaction Format Details
Examine the SEC code used and confirm whether a credit entry is appropriate for your intended transaction type.
Contact Your Payment Processor
Work with your ACH provider to understand which SEC codes support credit entries and determine the correct format for your transaction.
Verify Transaction Direction
Confirm whether you intended to send a credit (payment to them) or should be processing a debit (collection from them) instead.
Reprocess with Correct Format
Once you've identified the appropriate SEC code or transaction direction, resubmit the payment using the correct format.

Email Template

Subject: Payment Processing Issue - New Payment Method Needed

Hi [Customer Name],

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We encountered a technical formatting issue when processing your recent payment. The transaction was returned due to a mismatch between the payment format and transaction type - this is a technical compliance issue, not a problem with your account.

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Our payment processing team is correcting the format and will reprocess your payment using the appropriate transaction structure. This typically resolves quickly once the correct formatting is applied.

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Your payment should be processed successfully within the next 1-2 business days. We apologize for any inconvenience this technical issue may have caused.

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[Your Company Name]

When Your Payment to Vendors Fails

An R36 return on vendor payments means you used a transaction format that doesn't support credit entries. This requires adjusting either the SEC code or transaction direction to match your intended payment method.

Contact your payment processor to identify why a credit entry was attempted with a debit-only SEC code
Determine the correct SEC code for your vendor payment type (CCD, PPD, or CTX for credits)
Verify whether you intended to send a credit payment or collect a debit from the vendor
Reprocess the payment using the appropriate transaction format and SEC code combination