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Understand the ACH (Automated Clearing House) return code reference chart

by Intuit•19• Updated 2 weeks ago

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: If you received an email from Intuit regarding an unsuccessful direct deposit or payroll debit with a return code, refer to the list of return codes below to identify the reason and possible course of action. Work with your financial institution first to ensure your bank will accept payroll debits from Intuit and that there are no other issues with your bank account. After working with the bank, contact Payroll Support for any additional questions regarding the rejection.

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	Reason	Description
	Edit reject	Each debit or credit transaction being returned is returned by the customer's financial institution
R01	Insufficient funds	Available balance is not sufficient to cover the dollar amount of the debit entry
R02	Account closed	A previously open account is now closed
R03	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	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	Payment stopped or stop payment on item	Member had previously requested a stop payment of a single or recurring entry
R09	Uncollected funds	Available balance is sufficient, but the collected balance is not sufficient to cover the entry
R10	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	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	Beneficiary or account holder deceased	Beneficiary or account holder deceased
R16	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	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	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 Handle a Notice of Change.

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