Everything You Need To Know About ACH Return Codes!

 

Automatic Clearing House (ACH) return codes are used to identify the reasons why an ACH transaction has been rejected or returned. These codes help financial institutions, businesses and consumers understand the reason a payment was not accepted. It is important to be familiar with ACH return codes if you plan on utilizing Automated Clearing House services for payment processing.


The most commonly used ACH return codes are R01, R02 and R03. These codes indicate that the transaction was either rejected due to insufficient funds or the account number was incorrect. Other common ACH return codes include R04, which indicates the recipient’s address information is invalid; R05, meaning the account is closed; R06, indicating that a return item fee was charged; and R09, which means the authorization was revoked.


In addition to the codes listed above, there are also several other ACH return codes used by financial institutions to indicate why a transaction has been rejected. These include R08, which indicates that the transaction was unauthorized; R10, meaning the account is frozen or blocked; and R15, which indicates that the transaction has been returned due to an incorrect routing number.


Finally, it’s important to be aware of ACH return code C01, which typically indicates a duplicate of a previously submitted transaction. This code can help you identify duplicate payments that have been sent to the same recipient.


By understanding ACH return codes, businesses and consumers can quickly identify why a payment was rejected or returned. This knowledge can help you better manage your finances and ensure that all of your transactions are processed correctly.

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