Directory of ACH Return Codes

NACHA Definition:

The available and/or cash reserve balance is not sufficient to cover the dollar value of the debit entry.

What it Means:

There were insufficient funds in your customer’s account to complete the transaction. You will see this type of ACH Return displayed in ReceivablesPro with a status of “Returned NSF” and a Reason Description of “Non Sufficient Funds” or “NSF.”

What to Do:

You can try the transaction again (you will need to re-enter it as a new transaction) up to two times within 30 days of the original authorization date.

You can also configure your ACH processing account to automatically re-submit transactions returned for insufficient funds. (This setting is attached to your ACH Processing Account, and is not included in your ReceivablesPro system settings.)

If your account was not initially configured for an automatic re-submit, please contact your service provider so that they can make the appropriate adjustment with your ACH processor. Note that if you configure automatic re-submit, you run the risk of the transaction being returned again, and incurring a second ACH Return fee.

You can also contact your customer for a different form of payment, or ask them for a date when the account will contain funds so that you can manually submit the transaction again.

If you have not yet shipped the goods or provided the services covered by the payment, you may want to wait to do so until you have confirmation of a settled payment.

NACHA Definition:

A previously active account has been closed by action of the customer or the RDFI.

What it Means:

The bank account you attempted to charge is closed, and you cannot re-submit this transaction.

What to Do:

Contact your customer for a different bank account, or for another form of payment.

If you have not yet shipped the goods or provided the services covered by the payment, you may want to wait to do so until you have confirmation of a settled payment.

NACHA Definition:

The account number structure is valid and it passes the check digit validation, but the account number does not correspond to the individual identified in the Entry, or the account number designated is not an existing account.

What it Means:

When entering the transaction, the Routing Number, Bank Account Number, and/or the Customer Name was entered incorrectly. You cannot re-submit this transaction.

What to Do:

Contact your customer and confirm the Routing Number, Bank Account Number and the exact name on the bank account. (You may want to ask your customer to fax a copy of a voided check so that you can double-check these values yourself.)

If this information does not exactly match what you initially entered, make changes and submit a NEW payment.

If you did enter everything correctly, please contact your service provider so that they can further investigate the problem.

NACHA Definition:

The account number structure is not valid. The entry may fail the check digit validation or may contain an incorrect number of digits.

What it Means:

When entering the transaction, the Bank Account Number entered was definitely wrong. You cannot re-submit this transaction.

What to Do:

Contact your customer and obtain the correct bank account number. (You may want to ask your customer to fax a copy of a voided check so that you can double-check the bank account number yourself.)

Submit a NEW payment using the corrected bank account number.

NACHA Definition:

A CCD or CTX debit Entry was transmitted to a Consumer Account of the Receiver and was not authorized by the Receiver.

What it Means:

An ACH Transaction entered as “CCD” was attempted against a consumer’s personal bank account, and the consumer reported the transaction to the bank as not authorized.

Ordinarily a “CCD” transaction has a 3-day window in which the transaction can be disputed, but this code directs the bank to honor the return if it is entered within 60 days of the original transaction. This is done because the transaction was incorrectly coded as “CCD” when entered. “CCD” is used only when charging a business bank account.
 
This is an “unauthorized” return code, and will result in your account being assessed the ACH Chargeback Fee. (See ACH Chargeback Return Codes.)

You cannot re-submit this transaction. Any additional transactions you attempt to process against this account will also be returned unless your customer specifically instructs his bank to accept them.

What to Do:

Contact your customer and resolve any issues that caused the transaction to be disputed.

You can ask the customer for a different form of payment, or ask to debit a different bank account.

If you need to debit the same bank account, instruct your customer to call the bank and remove the block on transactions your company initiates. Then contact your service provider and inform them that the block has been lifted. You will be informed when it is permissible to re-submit the transaction. When you do, be certain to use the proper ACH Type for a personal bank account and NOT the “CCD” type. (See Appendix A: Authorizing Transactions for detailed information on ACH Types.)

Unfortunately, there is no dispute resolution available to you within the ACH Network. If your customer continues to claim the transaction was not authorized, but you have proof that it was properly authorized, you will need to sue your customer in Small Claims Court to collect. If you decide to take this course of action, please contact your service provider to obtain a copy of the statement your customer submitted to the bank-- You will need this document to pursue your case.

NACHA Definition:

The ODFI has requested that the RDFI return an Erroneous Entry. If the RDFI agrees to return the entry, the ODFI must indemnify the RDFI according to Article Two, subsection 2.12.3.

What it Means:

The bank that submitted a transaction on your behalf is asking your customer’s bank to reverse it. This typically happens if there is a technical problem during processing that causes transactions to be submitted incorrectly. In rare instances it can also happen if the bank suspects it is being used to submit fraudulent transactions. You cannot re-submit this transaction.

What to Do:

Contact your service provider to determine why the bank asked that the payment be returned.

NACHA Definition:

The RDFI's customer (the Receiver) has revoked the authorization previously provided to the Originator for this debit entry. This code and related Operating Rule provisions apply to Consumer entries only. (Note: This Return Reason Code may not be used for ARC, BOC, POP, or RCK Entries.)

What it Means:

Your customer reported to the bank that the transaction was not authorized because they revoked your authorization prior to the transaction date.

Typically you will see this return code when a customer revokes authorization for a recurring payment schedule, and you continue to process payments as part of that schedule.

This is an “unauthorized” return code, and will result in your account being assessed the ACH Chargeback Fee. (See ACH Chargeback Return Codes for more information.)

You cannot re-submit this transaction. Any additional transactions you attempt to process against this account will also be returned unless your customer specifically instructs his bank to accept them.

What to Do:

Immediately suspend any recurring payment schedules entered for this bank account. This will prevent additional transactions from being returned while you address the issue with your customer. Then contact your customer and resolve any issues that caused the transaction to be disputed or the schedule to be cancelled.

You can ask the customer for a different form of payment, or ask to debit a different bank account. Be certain to get proper authorization from your customer to debit the new account. (See Authorizing Echeck (ACH) Transactions for more information on how to do this.)

If you need to debit the same bank account, instruct your customer to call the bank and remove the block on transactions your company initiates. Then, contact your service provider and inform them that the block has been lifted. You will be informed when it is permissible to re-submit the transaction.

Unfortunately, there is no dispute resolution available to you within the ACH Network. If your customer continues to claim the transaction was not authorized, but you have proof that it was properly authorized, you will need to sue your customer in Small Claims Court to collect. If you decide to take this course of action, please contact your service provider to obtain a copy of the statement your customer submitted to the bank—you will need this document to pursue your case.

NACHA Definition:

The Receiver has placed a stop payment order on this Entry.

What it Means:

Your customer instructed its bank not to honor a specific transaction (or transactions) they previously authorized you to process. This instruction to the bank must be made BEFORE the transaction is actually processed.

You cannot re-submit this transaction, and your processor will reject all future transactions against this account until you provide proof of a new authorization from the customer.

What to Do:

Contact your customer and resolve any issues that caused the transaction to be stopped. To minimize the risk of additional returned transactions, it is a good idea to make certain that your customer understands your billing procedures, and agrees not to stop future payments.

You can re-enter the returned transaction again with proper authorization from your customer. You can also ask your customer for a different form of payment.

NACHA Definition:

Sufficient book or ledger balance exists to satisfy the dollar value of the transaction, but the available balance is below the dollar value of the debit Entry.

What it Means:

There were insufficient funds in your customer’s account to complete the transaction.

What to Do:

You can try the transaction again (you will need to re-enter it as a new transaction) up to two times within 30 days of the original authorization date.

You can also configure your ACH processing account to automatically re-submit transactions returned for insufficient funds. (This setting is attached to your ACH Processing Account, and is not included in your ReceivablesPro system settings.)

If your account was not initially configured for an automatic re-submit, please contact your service provider so that they can make the appropriate adjustment with your ACH processor. Note that if you configure automatic re-submit, you run the risk of the transaction being returned again, and incurring a second ACH Return fee.

You can also contact your customer for a different form of payment, or ask them for a date when the account will contain funds so that you can manually submit the transaction again.

If you have not yet shipped the goods or provided the services covered by the payment, you may want to wait to do so until you have confirmation of a settled payment

NACHA Definition:

The RDFI has been notified by the Receiver that the Entry is unauthorized, improper, ineligible, or pat of an Incomplete Transaction.

Return Type: Extended Return, with 60 Calendar Day Return Time frame.

Can only be used for Consumer accounts. May also be used to return an unauthorized debit Entry to a non-consumer account if the debit Entry contains a consumer SEC code.

What it Means:

Your customer submitted a signed document to the bank stating that the transaction was not authorized, or that the transaction was entered for an amount different than the authorized amount, or was submitted before the authorized date. (See Authorizing Echeck (ACH) Transactions for more information about authorization requirements.)
 
This is an “unauthorized” return code, and will result in your account being assessed the ACH Chargeback Fee. (See ACH Chargeback Return Codes for more information.)

You cannot re-submit this transaction. Any additional transactions you attempt to process against this account will also be returned unless your customer specifically instructs his bank to accept them.

What to Do:

Immediately suspend any recurring payment schedules entered for this bank account. This will prevent additional transactions from being returned while you address the issue with your customer.

Contact your customer and resolve any issues that caused the transaction to be disputed.

You can ask the customer for a different form of payment, or ask to debit a different bank account. Be certain to get proper authorization from your customer to debit the new account. (See Authorizing Echeck (ACH) Transactions) for more information on how to do this.)

If you need to debit the same bank account, instruct your customer to call the bank and remove the block on transactions your company initiates. Then contact your service provider and inform them that the block has been lifted. You will be informed when it is permissible to re-submit the transaction.

Unfortunately, there is no dispute resolution available to you within the ACH Network. If your customer continues to claim the transaction was not authorized, but you have proof that it was properly authorized, you will need to sue your customer in Small Claims Court to collect. If you decide to take this course of action, please contact your service provider to obtain a copy of the statement your customer submitted to the bank-- you will need this document to pursue your case.

NACHA Definition:

A financial institution received an Entry to an account that was sold to another financial institution.

What it Means:

Your customer’s account was sold to another bank but the Customer Record in ReceivablesPro was not updated with the new bank information, so the payment you processed was sent to the old bank and cannot be honored.

What to Do:

Contact your customer to obtain new Routing Number and Bank Account Number information, then enter a NEW transaction using the updated account numbers.

If the transaction was part of a recurring payment schedule, be sure to update the schedule to use the new bank account.

NACHA Definition:

Entry contains a Receiving DFI Identification or Gateway Identification that is not a valid ACH routing number.

What it Means:

The Routing Number entered for the transaction is invalid and does not belong to any bank in the ACH Network.

What to Do:

Your ReceivablesPro system is designed to validate routing numbers prior to submitting transactions for processing--so you should never see this reason code.

If you do see the code, double-check that you entered the Routing Number correctly, and contact your customer to confirm it if necessary. Then submit a NEW payment using the correct routing number.

If you have confirmed that the routing number you entered is correct, contact your service provider so that they can investigate the problem.

NACHA Definition:

1) Access to the account is restricted due to specific action taken by the RDFI or by legal action; or 2) OFAC has instructed the RDFI or Gateway to return the Entry.

What it Means:

The payment cannot be honored because the account has been frozen and no transactions can be processed against it.

What to Do:

Contact your customer to obtain a different form of payment. You will not be able to process transactions using this bank account until it is un-frozen.

There are several common reasons why a bank account may be frozen, such as a civil legal dispute over an unpaid debt. However, you may also see this code if OFAC has frozen the account or the individual payment due to suspicion of terrorism-related activity. (OFAC stands for the Office of Foreign Assets Control, which is an agency of the United States Department of the Treasury under the auspices of the Under Secretary of the Treasury for Terrorism and Financial Intelligence.)

This return code should be a red-flag for your business. If you see this code, be certain to do your due diligence around verifying the identity of your customer.

NACHA Definition:

Field(s) cannot be processed by RDFI. Some fields that are not edited by the ACH Operator are edited by the RDFI. If the entry cannot be processed by the RDFI, the field(s) causing the processing error must be identified in the addenda record information field of the Return.

What it Means:

Your customer’s bank had a technical problem with the ACH transaction record submitted for this payment.

What to Do:

Contact your service provider so that they can investigate the problem.

NACHA Definition:

The effective entry date for a credit entry is more than two banking days after the banking day of processing as established by the Originating ACH Operator; or The effective Entry date for a debit Entry is more than one Banking Day after the processing date.

What it Means:

The date entered in the ACH transaction record is invalid and the transaction cannot be processed.

What to Do:

The ReceivablesPro system is designed to submit scheduled transactions only on the exact date they are scheduled to occur, so you should never see this return code.

If you do see this code, please contact your service provider so that they can investigate further.

NACHA Definition:

Amount field is non-numeric...Amount field is not zero in a prenotification, DNE, ENR, Notification of Change, refused Notification of Change, or zero dollar CCD, CTX, or IAT Entry....Amount field is zero in an Entry other than a prenotification, DNE, ENR, Notification of Change, Refused Notification of Change, Return, Dishonored Return, Contested Dishonored Return, or zero dollar CCD, CTX, or IAT Entry....Amount field is greater than $25,000 for ARC, BOC, and POP entries.

What it Means:

The payment was entered for an amount of $0, or a paper-check conversion (ARC or BOC) was entered for over $25,000.

What to Do:

The ReceivablesPro system is designed to prevent zero dollar transactions and transactions over $25,000, so you should never see this error.

If you do see this code for a transaction under $25,000, please contact your service provider so that they can investigate further.

NOTE: You should not be converting paper checks to ACH transactions in ReceivablesPro. The system does not support the ACH Transaction types used with paper checks. If you did process a paper check as an ACH Transaction, your customer can claim that the payment was not authorized.

NACHA Definition:

ACH Entry to a non-transaction account.

What it Means:

The bank account you entered cannot be used for ACH Payments.

What to Do:

Contact your customer to obtain authorization to charge a different bank account. (Be certain that your customer confirms the account is enabled for ACH transactions.) Or, ask for a different form of payment.

NACHA Definition:

Any credit Entry that is refused by the Receiver may be returned by the RDFI.

Examples: (1) a minimum amount required by the Receiver has not been remitted; (2) the exact amount required has not been remitted; (3) the account is subject to litigation and the Receiver will not accept the transaction; (4) acceptance of the transaction results in a n overpayment; (5) the Originator is not known by the Receiver; or (6) the Receiver has not authorized this credit Entry to this account.

What it Means:

A credit (refund) you processed has been rejected by your customer or your customer’s bank.

What to Do:

Contact your customer to work out the problem, or ask them to work the problem out with their bank. Have your customer confirm that the refund will be accepted, then attempt to refund the transaction again.

Alternately, you can send your customer a paper check for the refund amount.

NACHA Definition:

The RDFI has received what appears to be a duplicate Entry; i.e., the trace number, date, dollar amount and/or other data matches another transaction. The RDFI should use this code with extreme care and should be aware that if a file has been duplicated, the Originator may have already generated a reversal transaction to handle the situation.

What it Means:

There was a technical error that caused your transaction to be transmitted twice, or your customer’s bank thinks that such an error occurred.

What to Do:

Contact your service provider so they can investigate the problem.

NACHA Definition:

Erroneous data or missing data in a mandatory field.

What it Means:

For a TEL or WEB ACH Transaction, the name of the account holder was not provided. For a CCD Transaction, the name of the Company was not provided.

What to Do:

The ReceivablesPro system is designed to prevent you from submitting transactions with these fields missing. If you see this error, there was likely a technical problem. Please contact Customer Care at your service provider so that they can investigate further.

NACHA Definition:

The Check digit for a Routing Number is not valid.

What it Means:

The bank routing number is invalid.

What to Do:

The ReceivablesPro system is designed to prevent you from submitting transactions with invalid routing numbers, but in rare cases you may see this error. Double check the routing number entered, and if necessary confirm it with your customer. (You may want to ask your customer to fax a copy of a voided check so that you can double-check the value yourself.)

If you’ve corrected a data entry error, you can enter the payment again as a NEW transaction.

If you’ve confirmed the routing number was entered correctly on the original transaction, please contact your service provider so that they can investigate further.

NACHA Definition:

The RDFI has been notified by the Receiver (non-consumer) that a specific Entry has not been authorized by the Receiver.

What it Means:

The company you attempted to debit has notified the bank that the transaction was not authorized. Or, you attempted to debit a business bank account that is not enabled for ACH transactions.

This is an “unauthorized” return code, and will result in your account being assessed the ACH Chargeback Fee. See ACH Chargeback Return Codes for more information.

You cannot re-submit this transaction. Any additional transactions you attempt to process against this account will also be returned unless your business customer specifically instructs his bank to enable the account for ACH transactions.

What to Do:

Immediately suspend any recurring payment schedules entered for this bank account. This will prevent additional transactions from being returned while you address the issue with your customer.

Contact your customer and resolve any issues that caused them to claim the transaction was unauthorized, then have your customer call the bank and remove the block on transactions your company initiates. Or, if the problem is account configuration, ask your customer to have the business bank account enabled for ACH transactions. (You may need to contact your service provider to obtain a code to give to your customer’s bank in order for it to enable ACH transactions from your company.) Then contact your service provider and inform them that the block has been lifted. You will be informed when it is permissible to re-submit the transaction.
NOTE: In some cases the bank will unilaterally use this code to return a CCD payment, without your customer’s knowledge or consent, if the business bank account is not configured to accept ACH transactions.

Alternately, you can ask the customer for a different form of payment, or ask to debit a different bank account. Be certain to get proper authorization from your customer to debit the new account. (See Authorizing Echeck (ACH) Transactions for more information on how to do this.)

Unfortunately, there is no dispute resolution available to you within the ACH Network. If your customer continues to claim the transaction was not authorized, but you have proof that it was properly authorized, you will need to sue your customer in Small Claims Court to collect.

NACHA Definition:

The RDFI may return a CCD or CTX Entry that the ODFI agrees to accept.

What it Means:

By ACH Rules, there is a two banking-day window in which CCD transactions may be returned for any permissible reason.

In some cases, a business bank account holder, or the bank itself, may request a return after that 2-day window has closed. If the ODFI (your bank, or your ACH Processor) agrees to accept a late return, it is processed using the R31 return code.

What to Do:

Contact your service provider so that they can help determine why the late return was honored.

Alternately, you can ask the customer for a different form of payment, or ask to debit a different bank account. Be certain to get proper authorization from your customer to debit the new account. (See Authorizing Echeck (ACH) Transactions for more information on how to do this.)

NACHA Definition:

The RDFI is not able to settle the entry

What it Means:

Your customer’s bank rejected the transaction.

What to Do:

Have your customer contact the bank to find out what caused the problem.

When the problem is remedied you can re-submit the payment as a NEW ACH transaction. You can also ask your customer for authorization to charge a different bank account, or ask for an alternate form of payment.

NACHA Definition:

The RDFI's participation has been limited by a federal or state supervisor.

What it Means:

Your customer’s bank is not able to process the ACH payment you initiated.

What to Do:

Ask your customer for authorization to charge a different bank account, or ask for an alternate form of payment.

NACHA Definition:

The source document to which an ARC, BOC, or POP entry relates has been presented for payment.

What it Means:

A paper check was converted to an ACH transaction, and was also submitted in paper form to the bank for standard processing-- thus the same payment was processed twice.

You will see this error if your customer notifies the bank that a check they wrote was converted to ACH in addition to being processed normally. Additionally, the bank can identify the duplication and assign this code without notifying your customer first. The bank will then “return” the ACH transaction and refund the customer's account, or will simply not process the duplicate transaction.

What to Do:

Check your records to determine if you accidentally entered an ACH transaction for a paper check that you also took the to the bank. If you did, then this “return” remedied the error, and you don’t need to take any further action.

If you’re sure you did not take the check to the bank (for example, you still have the original in your files), contact your customer to resolve the mistake--keeping in mind that the bank may have issued the return without the customer’s knowledge.
NOTE: As of March 2010, this code will be counted as an unauthorized “chargeback.” However, you should not be converting paper checks to ACH transactions in ReceivablesPro. The system does not support the ACH Transaction types used with paper checks. If you did process a paper check as an ACH Transaction, your customer can claim that the payment was not authorized. Contact your service provider for assistance with this transaction.