Receiver has no relationship with the Originator or has not authorized the Originator to debit the accountĬustomer Advises Entry Not in Accordance with the Terms of the Authorizationĭebit was inaccurate or improperly initiated source document was ineligible notice was not provided to the Receiver or amount was inaccurately obtainedįunds unavailable due to action by the RDFI or legal action Sufficient balance exists, but requested amount brings available balance below amount of debit entryĬustomer Claims Originator Is Not Known to/Is Authorized to Debit Receiver’s Account The Receiver requested the stop payment of an ACH debit entry The Originator’s bank asked for the returnĬonsumer revoked a previously authorized entry Unauthorized Debit to Consumer Account via Corporate SEC CodeĪn unauthorized debit entry was transmitted to a consumer account Previously active account has been closedĪccount number structure is valid, but doesn’t match the entry or is not an open account Insufficient balance to process transaction
ACH TRANSACTION CODES LIST CODE
With that in mind, let’s look at a few of the most frequently used ACH return reason codes, along with the time frames in which an ACH return may be requested using these codes: Return Code However, most returns happen for a few common reasons. With ACH transactions, there are dozens of possible return request scenarios. There are also specific return time frames, which can differ between codes. ACH return codes are a type of shorthand for specific information concerning the return, much like the card decline codes or dispute reason codes used by credit card networks.Īll ACH return reason codes consist of the letter “R” followed by two numbers (R01, R12, R22, etc.). There are over 80 unique return codes, and each one represents a different type of return. The code is meant to explain why an ACH transfer could not be processed.Įach return includes a three-character ACH return reason code that can point the recipient to additional details, and help explain why the return happened. The payment was not returned within the NACHA-mandated timeframeĪn ACH return code is a 3-digit alphanumeric indicator attached to a returned ACH transaction.A credit was unintentionally sent to the receiver during the return process.The payment failed due to a duplicate entry.The transaction was misrouted and therefore incorrectly processed.The payment failed due to incorrect information details.Legitimate reasons to consider an ACH dispute include: Submitting one initiates the process of reversing an ACH debit that the user claims was unauthorized. The WSUD is supplied by the financial institution where the charge took place. This is a form which bank customers fill out if they find incorrect or invalid debits on their accounts. Valid Reasons for an ACH ReturnĪ consumer will usually need to submit a Written Statement of Unauthorized Debit (WSUD) to initiate an ACH return. But, while bounced checks are generally caused by insufficient funds, that’s only one of multiple reasons why an ACH return may happen. You can think of a return as the electronic version of a bounced check. The RDFI is the financial institution who receives the credit or debit on behalf of the payee (“the Receiver”).Īn ACH return is a message, typically sent by an RDFI, that informs an ODFI that the ACH Network either couldn’t collect funds, or couldn’t deposit funds, into the receiver’s account. “ODFI” stands for “Originating Depository Financial Institution,” while “RDFI” means “Receiving Depository Financial Institution.” The ODFI is the party who initiates the process on behalf of the payer (“The Originator”). To understand ACH returns and ACH return codes, you need to know these two important acronyms: ODFI and RDFI. This is a way of informing the institution that the amount in question either could not be collected from, or deposited into, the appropriate account. If a transaction fails to process, one of the banks involved in the process may receive an ACH return. However, not all of these transactions will ultimately be completed. The National Automated Clearinghouse Association (NACHA) oversees the ACH network, and reports that some 30 billion payments were processed through the network in 2022. How Banks Stand to Benefit From Open Banking RulesĪCH transfers are a digital method of moving money between banks, credit unions, and other financial institutions, primarily within the US and its territories.What is a Merchant Account? Why Do You Need One?.What is a Payment Processor? The Top 10 Providers of 2023.My Bank Account is Under Investigation? What’s Going On?!.Should a Return Item Chargeback be Cause for Concern?.
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