ACH Return Codes - A Complete Guide

When you process ACH payments, you will occasionally run into ACH return codes. These codes are used by the banking system to indicate why a payment has been returned, and can be very helpful in troubleshooting problems with your payments.

In this guide, we'll go over all the major ACH return codes, what they mean, and what you can do to resolve them.

What are ACH Return Codes?

ACH return codes are three-digit codes that indicate why a payment was returned. These codes are set by the National Automated Clearing House Association (NACHA), which is the body that governs the ACH network.

While there are dozens of different ACH return codes, the most common ones are:

• R01 - Insufficient funds

• R03 - No account/unable to locate account

• R04 - Invalid account number

• R06 - Returned per ODFI request

• R07 - Authorizing bank unable to process

• R10 - Customer advises not authorized

• R20 - Non-transaction account

• R29 - Corporate customer advises not authorized

The full list of NACHA return codes can be found in Appendix 8 of the NACHA Operating Rules.

What Do the ACH Return Codes Mean?

Now that you know what ACH return codes are, let's take a closer look at some of the most common codes and what they mean.

R01 - Insufficient Funds

This return code indicates that the account you are trying to debit does not have enough funds to cover the transaction. This is the most common reason for ACH payments to be returned.

If you receive this return code, you will need to contact your customer and arrange for them to provide you with another form of payment.

R03 - No Account/Unable to Locate Account

This return code indicates that the account you are trying to debit does not exist. This could be because the account number is incorrect, or because the account has been closed.

R04 - Invalid Account Number

This return code indicates that the account number you are trying to debit is invalid.

If you receive this return code, you will need to contact your customer and confirm the account number you are using.

R06 - Returned per ODFI request

This return code indicates that the payment was returned at the request of the Originating Depository Financial Institution (ODFI).

If you receive this return code, you will need to contact your ODFI to find out more information about why the payment was returned.

R07 - Authorizing bank unable to process

This return code indicates that the bank that is authorizing the payment is unable to process it. This could be for a variety of reasons, including suspected fraud or an unauthorized transaction.

If you receive this return code, you will need to contact the bank that is authorizing the payment to find out more information about why the payment was returned.