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Fix Bill Pay payments rejected due to vendor’s account

by Intuit•2• Updated 4 weeks ago

When you send an ACH payment to a vendor with QuickBooks Bill Pay it can be rejected for a variety of reasons.  

If you encounter any issues, double-check all the payment information you have entered to ensure there are no mistakes. If payment instructions look accurate, you should contact your vendor directly so they can resolve any issues with their financial institution or provide alternate payment instructions. Alternatively, you can pay this bill through QuickBooks Bill Pay by sending a paper check. We will print and mail the check to the vendor’s address that you provide. 

Here’s a quick guide to understanding some common issues that might be causing your payment not to process to your vendor:

ACH return code reference chart

ACH CodeReasonDescription
R 02Account ClosedThe vendor’s account is closed. You’ll need to contact the vendor to get an updated bank account number.
R 03Unable to locate accountThe account or routing number you have entered cannot be located at the receiving bank OR it does not match the name you have given for that vendor. Please confirm the account number and routing number and vendor name you entered is accurate by asking the vendor to log into their online banking app and locating the account and routing number.

Common mistakes include:
• Searching online for a bank’s routing number. Banks often have multiple routing numbers.
• Using the incorrect routing and account number combination. Banks may have dozens to hundreds of routing numbers based on the bank’s geography, business division, or method of payment. 
• Using the routing number from a check. Banks may or may not have the same routing number printed on checks vs. for online banking.
• Using the doing business as name (DBA name) instead of the name of the legal entity as listed on the bank account.
R 04Invalid Account Number StructureThe account number fails the check digit validation or may contain an incorrect number of digits. Please confirm the account number and routing number you entered is accurate.
R 12Branch Sold to Another DFIThe vendor’s bank branch has been sold to another financial institution. Get the updated banking information from the vendor.
R 13Invalid Routing NumberThe routing number you have used isn’t valid. Make sure you are using the correct routing number for ACH payments.
R 15Beneficiary or Account Holder DeceasedThe account holder has passed away. Please reach out to your vendor for updated account details.
R 16Account FrozenThe account has been frozen or restricted, preventing your payment from being processed.
R 17File Record Edit Criteria / Entry with Invalid Account Number Initiated under Questionable CircumstancesThere is a problem with the data entry for this account. It might be due to incorrect formatting or missing information. In some instances, this return indicates that the vendor’s bank is indicating concerns about this transaction, so we would advise reviewing your vendor’s information for accuracy.
R 20Non-Transactional AccountThe receiving account is not a transactional account. Please contact the vendor to obtain a different account number.
R 23Credit Entry Refused by ReceiverThe account holder or the receiving bank has rejected the payment. Please reach out to your vendor for an updated bank account number.
R 85Incorrectly Coded Outbound International PaymentThe account information you entered is for an international payment which we do not support at this time.

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