Find out the meaning of Automated Clearing House (ACH) return codes in QuickBooks Online Payroll and QuickBooks Desktop Payroll.
An ACH payment can be returned for a lot of reasons. And when that happens, we receive a return code. Here, we'll walk you through the various meanings and reasons for ACH return codes.
A few things to remember:
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Glossary
ACH - Automated Clearing House Network
Addenda Record - An ACH record type that carries supplemental data needed to completely identify an account holder(s) or provide information concerning a payment to the RDFI or receiver.
ODFI - Originating Depository Financial Institutions
Originator - An organization or company that produces an ACH file and delivers it to an ODFI for introduction into the ACH Network.
RDFI - Receiving Depository Financial Institutions
ACH return code reference chart
| US ACH Code | Canada ACH Code | Reason | Description |
| 900 | Edit reject | Each debit or credit transaction being returned is returned by the customer's financial institution | |
| R01 | 901 | Insufficient funds | Available balance is not sufficient to cover the dollar amount of the debit entry |
| R02 | 905 | Account closed | A previously open account is now closed |
| R03 | 902 | No account or unable to locate account | The account number does not correspond to the individual identified in the entry or a valid account |
| R04 | 912 SDIVI_E028 SDIVI_E029 SDIVI_E031 | Invalid account number | The account number fails the check digit validation or may contain an incorrect number of digits |
| R05 | Unauthorized debit to consumer account | A business debit entry was transmitted to a members consumer account, and the member had not authorized the entry | |
| R06 | Returned per ODFI's request | The ODFI has requested that the RDFI return the entry | |
| R07 | Authorization revoked by customer | Member who previously authorized an entry has revoked authorization with the originator | |
| R08 | 903 | Payment stopped or stop payment on item | Member had previously requested a stop payment of a single or recurring entry |
| R09 | 908 | Uncollected funds | Available balance is sufficient, but the collected balance is not sufficient to cover the entry |
| R10 | 922 | Customer advises not authorized | Member advises not authorized, notice not provided, improper source document, or amount of entry not accurately obtained from source document |
| R11 | Check truncation entry return | To be used when returning a check truncation entry | |
| R12 | Branch sold to another DFI | RDFI unable to post entry destined for a bank account maintained at a branch sold to another financial institution | |
| R13 | SDIVI_E026 | Invalid ACH routing number | Financial institution does not receive commercial ACH entries |
| R14 | Representative payee deceased or unable to continue in that capacity | Representative payee is deceased or unable to continue in that capacity, beneficiary is not deceased | |
| R15 | 910 | Beneficiary or account holder deceased | Beneficiary or account holder deceased |
| R16 | 911 | Account frozen | Access to account is restricted due to a specific action taken by the RDFI or by legal action |
| R17 | File record edit criteria | Fields rejected by RDFI processing (identified in return addenda) | |
| R18 | Improper effective entry | Entries have been presented prior to the first available processing window for the effective date | |
| R19 | Amount field error | Improper formatting of the amount field | |
| R20 | 907 | Non-transaction account | Policies or regulations (such as Regulation D) prohibit or limit activity to the account indicated |
| R21 | Invalid company identification | The company ID information not valid (normally CIE entries) | |
| R22 | Invalid individual ID number | Individual ID used by receiver is incorrect (CIE entries) | |
| R23 | Credit entry refused by receiver | Receiver returned entry because minimum or exact amount not remitted, bank account is subject to litigation, or payment represents an overpayment; originator is not known to receiver or receiver has not authorized this credit entry to this bank account | |
| R24 | Duplicate entry | RDFI has received a duplicate entry | |
| R25 | Addenda error | Improper formatting of the addenda record information | |
| R26 | Mandatory field error | Improper information in one of the mandatory fields | |
| R27 | Trace number error | Original entry trace number is not valid for return entry; or addenda trace numbers do not correspond with entry detail record | |
| R28 | Routing number or check digit | Check digit for transit routing number is incorrect | |
| R29 | 907 | Corporate customer advises not authorized | RDFI has been notified by business account holder that a specific transaction is unauthorized |
| R30 | RDFI not participant in check truncation program | Financial institution not participating in automated check safekeeping application | |
| R31 | Permissible return entry | RDFI has been notified by business account holder that a specific transaction is unauthorized | |
| R32 | RDFI nonsettlement | RDFI is not able to settle the entry | |
| R33 | Return of XCK entry | RDFI determines at its sole discretion to return an XCK entry; an XCK return entry may be initiated by midnight of the sixtieth day following the settlement date if the XCK entry |
If you get a Notice Of Change, see Notice of Change (NOC) definition and codes.