This ACH return code only applies to Automated Enrollment Entry (ENR) transactions for federal benefits paid via direct deposit. R46 occurs when the Representative Payee Indicator Code is missing, omitted, or inconsistent with the Federal Government Agency's records. This indicator identifies when someone is authorized to receive payments on behalf of another person, such as minors or legally incapacitated adults receiving government benefits.
Error message: "The Representative Payee Indicator Code included in Field 3 of the Addenda Record has been omitted or it is not consistent with the Federal Government Agency's records."
What Causes ACH Return Code R46?
The R46 ACH return code means "Invalid Representative Payee Indicator" and indicates that the Representative Payee Indicator Code associated with an Automated Enrollment Entry (ENR) for federal benefits is either missing, omitted, or doesn't match the information stored in the government agency's records. This return code exclusively applies to government benefit payments distributed through direct deposit, such as Social Security, Veterans Affairs, or other federal agency payments.
ENR transactions require properly configured representative payee indicators when someone other than the beneficiary is authorized to receive and manage the funds on their behalf. This commonly occurs with payments for minors, legally incapacitated adults, or individuals who require assistance managing their government benefits. When these indicators are incorrectly formatted, missing entirely, or don't align with the federal agency's records about who is authorized to act as a representative payee, the receiving financial institution returns the payment with an R46 code.
Can You Retry R46 Payments?
You cannot retry R46 payments as a merchant or business owner. This return code can only be resolved by the originating federal government agency that issued the benefit payment. The agency must verify and correct the representative payee indicator information in their system, ensuring it properly reflects the authorized relationship between the representative payee and beneficiary before resubmitting the ENR entry.
How to Respond to an R46 Code
An R46 return requires coordination with the federal government agency that processes the benefit payment, as only they have access to verify and correct representative payee indicator information in their systems.
When Your Customer's Payment Fails
- Confirm ENR Transaction Type
Verify this relates to a federal benefit payment (Social Security, VA, etc.) rather than a regular business transaction. - Direct Customer to Government Agency
Instruct the customer to contact the specific federal agency that processes their benefits to report the representative payee indicator issue. - Provide Return Documentation
Give the customer the R46 return code information and explain that their representative payee authorization needs verification with the agency. - Avoid Reprocessing
Do not attempt to retry or correct the payment, as only the government agency can resolve representative payee indicator discrepancies in ENR entries.
Subject: Federal Benefit Payment Error - Representative Payee Issue
Hi [Customer Name],
We received notification that a federal benefit payment to your account was returned due to an invalid representative payee indicator (R46). This appears to be related to how your representative payee information is stored in the government agency's records.
To resolve this issue, you'll need to contact the federal agency that processes your benefits (such as Social Security Administration, Veterans Affairs, etc.) and inform them of the R46 return code. They will need to verify and update your representative payee indicator information to match their authorization records.
This type of error can only be corrected by the government agency that originates the payment. We're unable to resolve ENR-related returns on our end, but we're here to assist with any questions about your account.
Best regards,
[Your Company Name]
When Your Payment to Vendors Fails
An R46 return on vendor payments is extremely unlikely unless you're processing payments related to federal benefit administration or working directly with government agencies on ENR transactions. If you encounter this return, it indicates representative payee indicator issues in federal payment processing.
- Contact the government agency or federal office handling the ENR transaction
- Provide them with the R46 return code and transaction details
- Allow the agency to verify and correct their representative payee indicator records
- Wait for the agency to reprocess the payment with accurate representative payee information
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