R65

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High-Priority Return Code

This ACH return code indicates that the transaction code used in a return entry is not the proper return equivalent of the transaction code in the original entry. R65 returns occur when the receiving bank processes a return using an incorrect transaction code format. According to NACHA rules, all entries must be returned as received - credits as credits, debits as debits, checking as checking, savings as savings.

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Error message: "The Transaction Code in the Entry Detail Record of the Return is not the return equivalent of the Transaction Code in the original entry."

What Causes ACH Return Code R65?

The R65 ACH return code means "Incorrect Transaction Code" and indicates that when processing a return entry, the receiving bank used a transaction code that doesn't match the return equivalent of the original transaction code. This violates NACHA rules which require that all entries must be returned exactly as they were received.

For example, if the original transaction was a credit to a checking account (transaction code 22), the return must also use a checking credit code, not a savings credit code (32) or a debit code (27). R65 returns ensure that the fundamental structure and direction of transactions remain consistent throughout the return process, maintaining the integrity of the ACH network.

Can You Retry R65 Payments?

You can address R65 returns by working with the receiving bank to correct the transaction code used in the return entry. Since this is an error in how the return was coded rather than the original transaction, resolution involves ensuring the return entry uses the correct transaction code that matches the return equivalent of the original entry. Once the transaction code is corrected, the return can be reprocessed properly.

Common Causes

Using credit transaction codes when debit codes are required for returns

Mixing up checking and savings account transaction codes in returns

Manual processing errors when creating return entries

System configuration issues that populate incorrect transaction codes

Misunderstanding of NACHA return equivalent requirements

Key Information

Return timeframe: Within 5 banking days after settlement date of return entry

Error occurs in return process transaction coding

Must follow NACHA rule: return entries as received

Requires exact transaction code type matching (credit/debit, checking/savings)

Resolution requires coordination with receiving bank's ACH operations

How to Respond to an R65 Code

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An R65 return requires immediate coordination with the receiving bank to correct the transaction code used in the return entry to match the proper return equivalent of the original transaction.

When Your Customer's Payment Fails

Contact RDFI's ACH Operations
Reach out to the receiving bank's ACH operations team to report the incorrect transaction code used in the return entry.
Provide Original Transaction Details
Give the bank the original transaction code and explain what the correct return equivalent should be based on NACHA rules.
Request Return Reversal
Ask if the bank can reverse the incorrectly coded return so that a new return with the proper transaction code can be initiated.
Verify Code Requirements
Confirm the correct return equivalent transaction code before reprocessing to ensure compliance with NACHA rules.

Email Template

Subject: Payment Return Code Discrepancy - Under Investigation

Hi [Customer Name],

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We've identified a processing discrepancy related to your recent payment return where the transaction code used doesn't match NACHA requirements for return processing.

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This is an administrative error in how the return was coded by the bank rather than an issue with your original payment. We're working directly with the banks involved to correct the transaction code according to ACH network rules.

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We expect this to be resolved within 2-3 business days, after which the return will be reprocessed with the correct transaction code. No action is needed on your part.

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Thank you for your patience while we resolve this technical matter.

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[Your Company Name]

When Your Payment to Vendors Fails

An R65 return on vendor payments indicates that a return entry was processed with an incorrect transaction code that doesn't match the return equivalent of the original transaction. This requires working with banks to correct the coding error.

Contact the receiving bank's ACH operations team to report the incorrect transaction code in the return
Provide the original transaction code and specify what the correct return equivalent should be
Request that the incorrectly coded return be reversed so a properly coded return can be processed
Verify NACHA return equivalent requirements before reprocessing to prevent future R65 returns