What Is ACH Return Code List? A Detailed Guide

 ACH return code list is a compilation of banking codes that indicate why an ACH transfer was rejected or returned. These codes are used by banks to identify and explain the various reasons for rejecting payment transactions. Some common ACH return codes include R01 (Insufficient Funds), R02 (Account Closed) and R03 (No Account/Unable to Locate Account).

The ACH Return Code List is maintained by the National Automated Clearing House Association (NACHA) and is updated regularly. It contains a comprehensive list of all codes that can be used in the electronic payment processing industry.

What Is an ACH Return?

An ACH return is when a payment transaction has been rejected by the receiving bank. In this case, the originating bank would contact the receiving bank and explain why the payment was not accepted. The receiving bank then sends back a code explaining to the originator what happened.


How Does an ACH Return Work?

When a payment transaction is initiated, the originating bank sends out a request for payment to the receiving bank. If there are any issues with processing the payment then it will be rejected by the receiving bank and returned to the originating bank. The originating bank will then receive an ACH return code from the receiving bank that explains why the payment was not accepted.

What Are the Different Types of ACH Return Codes?

The ACH return code list contains a comprehensive list of all codes that can be used in the electronic payment processing industry. Some common ACH return codes include R01 (Insufficient Funds), R02 (Account Closed) and R03 (No Account/Unable to Locate Account).

What Should I Do If I Receive an ACH Return?

If you receive an ACH return, it is important to take action quickly. First, determine the reason for the rejection by consulting your bank or reviewing the ACH return code list. Once you have determined the reason for the rejections, you should take action to correct the issue and re-initiate the payment. If you need assistance understanding or resolving the issue, it is important to contact your bank or a professional payment processor as soon as possible.

Conclusion

In conclusion, ACH return code list is an important tool in understanding why payments have been rejected or returned. It contains a comprehensive list of all codes that can be used in the electronic payment processing industry. Understanding these codes and taking appropriate action is essential to ensure successful payments every time. If you have any questions about ACH returns, contact your bank or a professional payment processor for assistance.

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