In this article, note each ACH Return Code that could occur, what each code means, and what you can do to help rectify each situation appropriately.
When you're managing your business finances with Autobooks, encountering an ACH return code can be a bit of a hassle. It's essential to understand these codes and how to address them. Here's a simple guide to the ACH return codes you may face.
It's important for you as a business owner to act swiftly and communicate effectively with your customers when you encounter these ACH return codes. Always aim to understand the reason behind the return and find a resolution that maintains a positive relationship with your customers. Remember, clear communication is key in these situations.
- R01 - Insufficient Funds
- What It Means: The account doesn't have enough money to cover the transaction.
- What to Do: Reach out to your customer to arrange an alternate payment method.
- R02 - Account Closed
- What It Means: The customer's previously active account has been closed.
- What to Do: Contact the customer to get a new bank account or another payment method.
- R03 - No Account/Unable to Locate Account
- What It Means: The account number is either incorrect or the account doesn't exist.
- What to Do: Verify the routing and account numbers with your customer, including the account name.
- R04 - Invalid Account Number
- What It Means: The account number provided is incorrect.
- What to Do: Ask the customer for the correct account number.
- R05 - Unauthorized Debit Entry
- What It Means: The customer has disputed the transaction.
- What to Do: Discuss the issue with your customer to resolve the dispute or propose an alternative payment.
- R06 - Returned per ODFI’s Request
- What It Means: The transaction was disputed or rejected at the request of the originating institution.
- What to Do: Work with your customer to resolve the dispute.
- R07 - Authorization Revoked by Customer
- What It Means: The customer has canceled their authorization for the payment.
- What to Do: Contact the customer to understand the issue or discuss another payment option.
- R08 - Payment Stopped
- What It Means: The customer has halted a recurring debit payment.
- What to Do: Resolve any disputes or discuss different payment arrangements with your customer.
- R09 - Uncollected Funds
- What It Means: Insufficient available balance to cover the debit.
- What to Do: Ask your customer for another form of payment.
- R10 - Customer Advises Not Authorized
- What It Means: The customer states the transaction wasn't authorized.
- What to Do: Clarify and rectify any issues with your customer or find an alternate payment method.
- R11 - Customer Advises Entry Not in Accordance with the Terms of the Authorization
- What It Means: There's an error with the payment terms, like incorrect amount or timing.
- What to Do: Address the error with your customer or suggest another payment method.
- R12 - Branch Sold to Another DFI
- What It Means: The account's branch has changed ownership.
- What to Do: Get updated bank details from your customer or another payment method.
- R13 - RDFI Not Qualified to Participate
- What It Means: The receiving institution can't participate in ACH, or the routing number is wrong.
- What to Do: Confirm the routing number with your customer or discuss alternative payment options.
- R14 - Representative Payee Deceased or Unable to Continue
- What It Means: The account manager has died or can't manage the account.
- What to Do: Unfortunately, you cannot accept payments from this customer.
- R15 - Beneficiary or Account Holder Deceased
- What It Means: The account owner has passed away.
- What to Do: Payments cannot be accepted from this customer.
- R16 - Account Frozen
- What It Means: The account is frozen due to bank or legal actions.
- What to Do: Request an alternative payment method from your customer.
- R20 - Non-Transaction Account
- What It Means: The account cannot be used for transactions.
- What to Do: Ask for a different payment method from your customer.
- R29 - Corporate Customer Advises Not Authorized
- What It Means: The transaction was not authorized by the corporate customer.
- What to Do: Work with your customer to resolve the issue or find another payment method.
- R31 - Return Requested Beyond Typical Return Window
- What It Means: The return of funds has been requested outside of typical return window.
- What to Do: Contact your customer and resolve any issues that caused the transaction to be disputed or request a different form of payment.