This ACH return code is specific to International ACH Transactions (IAT) and indicates that the foreign receiving bank is unable to settle the transaction due to problems in the foreign payment system. R83 occurs when technical, operational, or security issues at the foreign bank prevent successful payment settlement.
Error message: "The IAT entry is being returned due to settlement problems in the foreign payment system."
What Causes ACH Return Code R83?
The R83 ACH return code means "Foreign Receiving DFI Unable to Settle" and indicates that the foreign receiving bank cannot complete settlement of an International ACH Transaction (IAT) due to problems within their payment system. This return code is exclusively used for international payments when the foreign financial institution experiences technical difficulties, operational issues, or security concerns that prevent transaction processing.
Settlement problems can range from temporary network outages and system maintenance to more serious issues like suspected fraudulent activity or compliance restrictions. Unlike other return codes that indicate data errors, R83 reflects operational challenges at the foreign bank that are typically beyond the originator's control and require coordination between financial institutions to resolve.
Can You Retry R83 Payments?
You can retry R83 payments once the settlement problems at the foreign receiving bank are resolved. However, the timeline is uncertain as it depends on the foreign payment system fixing their operational issues. Contact your bank or the foreign receiving institution for updates on when settlement capabilities will be restored.
How to Respond to an R83 Code
An R83 return indicates settlement problems at the foreign receiving bank, requiring communication with financial institutions to determine when the foreign payment system will be operational again.
When Your International Payment Fails
- Contact Your Bank Immediately
Reach out to your ODFI to report the R83 return and request they contact the foreign receiving bank for details. - Get Status Updates
Ask your bank to inquire about the nature of settlement problems and expected resolution timeline. - Monitor System Status
Check if other international payments to the same country or bank are experiencing similar issues. - Wait for Resolution
Hold off on retrying until the foreign bank confirms their settlement systems are operational.
Subject: International Payment Delayed - System Issues at Receiving Bank
Hi [Customer Name],
Your international payment has been returned due to settlement problems at the receiving bank's payment system. This is a technical issue on their end that prevents them from processing transactions.
We've contacted our bank to get more information about the situation and expected resolution timeline. These issues are typically resolved within a few business days, but the exact timeframe depends on the foreign bank's systems.
We'll keep you updated as we receive more information and will reprocess your payment as soon as their systems are operational.
Thanks for your patience,
[Your Company Name]
When Your International Vendor Payment Fails
An R83 return on international vendor payments means the foreign bank cannot settle transactions, potentially affecting multiple vendors in that country and requiring proactive communication about payment delays.
- Inform affected international vendors immediately about the payment system issues
- Contact your bank to understand the scope and expected duration of settlement problems
- Consider alternative payment methods for urgent international vendor payments
- Monitor for updates and reprocess payments once the foreign bank's systems are restored
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