This ACH return code indicates a disagreement between banks about whether a return was actually authorized. R70 occurs when the RDFI claims they returned a CCD or CTX entry with the ODFI's permission, but the ODFI disputes this authorization. This code can only be used to dishonor specific return types (R06 and R31) and represents a record mismatch between institutions.
Error message: "The ODFI has received a return entry identified by the RDFI as being returned with the permission of, or at the request of, the ODFI, but the ODFI has not agreed to accept the entry or has not requested the return of the entry."
What Causes ACH Return Code R70?
The R70 ACH return code means "Permissible Return Entry Not Accepted" and indicates a dispute between financial institutions about return authorization. This occurs when the receiving bank (RDFI) returns a CCD (Cash Concentration or Disbursement) or CTX (Corporate Trade Exchange) entry claiming the originating bank (ODFI) gave permission, but the ODFI denies requesting or agreeing to this return.
R70 is a specialized dishonored return code that can only be used to contest specific return types: R06 (Returned per ODFI's Request) and R31 (Permissible Return Entry). This represents a communication breakdown or record-keeping discrepancy between banks regarding whether a return was actually authorized, requiring direct coordination to resolve the conflicting documentation.
Can You Retry R70 Payments?
You cannot retry R70 payments until both banks resolve their disagreement about return authorization. Since this involves conflicting records between financial institutions about whether a return was requested, resolution requires direct coordination between the ODFI and RDFI to clarify authorization and establish the correct transaction status.
How to Respond to an R70 Code
An R70 return indicates an authorization dispute between banks requiring immediate coordination between both the ODFI and RDFI to clarify conflicting records about return permissions and resolve the disagreement.
When Your Customer's Payment Fails
- Contact Both Banks Immediately Reach out to both the ODFI and RDFI to understand the authorization dispute and gather documentation.
- Request Documentation Review Ask both institutions to review their records regarding any return authorization agreements or requests.
- Facilitate Bank Communication Help coordinate communication between the banks to resolve conflicting information about the return permission.
- Wait for Resolution Allow the banks to clarify their records and establish the correct authorization status before proceeding.
Subject: Payment Authorization Dispute - Bank Coordination Required
Hi [Customer Name],
We've encountered an unusual situation with your recent payment where our banks have conflicting records about return authorization. The receiving bank claims they had permission to return the transaction, but our bank disputes this authorization.
This type of issue requires direct coordination between the financial institutions to review their documentation and resolve the discrepancy. We're actively facilitating communication between both banks to clarify the authorization status.
We expect this institutional dispute to be resolved within 3-5 business days. We'll contact you immediately once the banks have clarified their records and the payment status is determined.
Thank you for your patience,
[Your Company Name]
When Your Payment to Vendors Fails
An R70 return on vendor payments indicates that your bank disputes authorization for a return that the vendor's bank claims was permissible, requiring coordination between both institutions to resolve conflicting records about return permissions.
- Contact your bank to understand their position on the disputed return authorization
- Request they coordinate directly with the vendor's bank to review documentation
- Communicate with the vendor about the inter-bank authorization dispute
- Wait for both banks to resolve their conflicting records before reprocessing the payment
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