R59

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High-Priority Return Code

This ACH return code indicates that the bank name provided in the transaction doesn't match the official name on record for the receiving financial institution. R59 returns occur when there's a discrepancy between the bank name submitted and the actual registered name of the financial institution. This validation check helps ensure transactions are being sent to the correct institution and prevents potential misdirection of funds.

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Error message: "The transaction was returned because the bank name provided was not correct."

What Causes ACH Return Code R59?

The R59 ACH return code means "Incorrect Bank Name" and indicates that the financial institution name provided in the ACH transaction doesn't match the official name registered for that bank. This validation occurs when the receiving bank's name in your transaction file differs from their official registered name in banking databases.

Bank names must match exactly as they appear in official records, including proper formatting, abbreviations, and legal designations. For example, using "Bank of America" when the official name includes "N.A." or using an outdated name after a merger could trigger an R59 return. This validation helps prevent fraud and ensures funds are directed to the correct financial institution.

Can You Retry R59 Payments?

You can retry R59 payments after verifying and correcting the bank name to match the official registered name of the financial institution. Before reprocessing, confirm the exact legal name of the receiving bank through official sources such as the bank's website, regulatory databases, or direct contact with the institution. Once the correct bank name is used, the transaction should process successfully.

Common Causes

Using abbreviated bank names instead of full legal names

Outdated bank names following mergers or acquisitions

Missing legal designations like "N.A." or "National Association"

Typographical errors in the financial institution name

Using "doing business as" names instead of official registered names

Key Information

Return timeframe: 2 banking days

Can retry after correcting the bank name to match official records

Bank name must exactly match registered legal name

Case-sensitive validation in some systems

Requires verification through official banking sources

How to Respond to an R59 Code

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An R59 return requires immediate verification of the correct official bank name through authoritative sources, followed by updating your records and reprocessing the payment with the accurate institution name.

When Your Customer's Payment Fails

Verify Official Bank Name
Check the receiving bank's official website or contact them directly to confirm their exact legal name as registered with banking authorities.
Check for Recent Name Changes
Verify if the bank has undergone mergers, acquisitions, or name changes that would affect their official designation.
Include Proper Legal Designations
Ensure the bank name includes all required legal suffixes like "N.A.", "National Association", "FSB", or "Member FDIC" as appropriate.
Update System Records
Correct the bank name in your payment system and verify the change before reprocessing the transaction.

Email Template

Subject: Payment Processing Update - Bank Name Verification

Hi [Customer Name],

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We encountered a technical issue processing your recent payment because the bank name in our system doesn't match the official records for your financial institution.

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We're updating our records with the correct bank name and will reprocess your payment shortly. This was an administrative error on our end that won't affect your account or require any action from you.

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Your payment will complete within 1-2 business days once we've made this correction. We apologize for any inconvenience this may have caused.

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Best regards,

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[Your Company Name]

When Your Payment to Vendors Fails

An R59 return on vendor payments means the bank name you have on file for the vendor doesn't match the official name of their financial institution. This requires verification and correction of the bank name before reprocessing.

Contact the vendor to confirm their bank's exact official name as it appears on statements
Verify the bank name through the institution's official website or customer service
Check if the bank has undergone name changes due to mergers or regulatory updates
Update your vendor records with the correct official bank name and reprocess the payment