ACH Return Codes

When the receiving bank sends back an ACH payment, the CounterpartyPayoutReturned webhook carries the bank's return code in returnCode and its reason in returnReason. The payout amount is available on the counterparty balance again.

returnCode and returnReason are null when a payout ends without a bank return, for example when it fails or is cancelled before it is sent. Read status to tell these cases apart.

Some codes apply only to debits or to specific entry types. They are listed so you can handle every code you might receive.

Account and routing problems

These usually mean the payee's bank details need to change. Confirm the details with the payee before paying the same account again.

Code	Reason	What it means
R02	Account Closed	The account was open at one point but has since been closed.
R03	No Account/Unable to Locate Account	The account number is well formed but does not match an open account or the name on the entry.
R04	Invalid Account Number Structure	The account number fails the receiving bank's format or check digit validation.
R12	Account Sold to Another DFI	The account has moved to a different financial institution.
R13	Invalid ACH Routing Number	The routing number is not a valid ACH routing number.
R20	Non-Transaction Account	The account type does not allow ACH transactions, such as some savings accounts.
R28	Routing Number Check Digit Error	The routing number fails its check digit validation.
R34	Limited Participation DFI	The receiving bank is restricted from taking part in ACH.
R45	Invalid Individual / Company Name	The name on the entry is not valid for the receiving account.

Account holder and legal restrictions

Do not pay the account again until the payee has resolved the issue with their bank.

Code	Reason	What it means
R14	Representative Payee Deceased or Unable to Continue in That Capacity	The representative payee on the account can no longer act for the beneficiary.
R15	Beneficiary or Account Holder Deceased	The beneficiary or account holder has died.
R16	Account Frozen/Entry Returned per OFAC Instruction	The account is frozen, or the entry was returned on a sanctions instruction.
R23	Credit Entry Refused by Receiver	The account holder refused the credit.

Funds and authorization

These are most common on debits.

Code	Reason	What it means
R01	Insufficient Funds	The available balance was not enough to cover the entry.
R05	Unauthorized Debit to Consumer Account Using Corporate SEC Code	A consumer account was debited using an entry type meant for business accounts.
R07	Authorization Revoked by Customer	The account holder revoked the authorization for this entry.
R08	Payment Stopped	The account holder placed a stop payment on this entry.
R09	Uncollected Funds	The ledger balance covers the entry, but the collected balance does not.
R10	Customer Advises Unauthorized, Improper, Ineligible, or Part of an Incomplete Transaction	The account holder says they did not authorize the entry, or that it was improper.
R29	Corporate Customer Advises Not Authorized	A business account holder says they did not authorize the entry.
R31	Permissible Return Entry (CCD and CTX Only)	The originating bank agreed to accept a late return of a business entry.

Entry and processing errors

These point to a problem with how the entry was built or processed, not with the payee's account.

Code	Reason	What it means
R06	Returned per ODFI's Request	The originating bank asked for the entry to be returned.
R11	Check Truncation Early Return	A check truncation entry was returned early.
R17	File Record Edit Criteria	A field in the entry could not be processed by the receiving bank.
R18	Improper Effective Entry Date	The entry's effective date was not valid.
R19	Amount Field Error	The amount was invalid, for example zero on an entry that requires an amount.
R21	Invalid Company Identification	The company identification on the entry is not valid.
R22	Invalid Individual ID Number	The individual identification number on the entry is not valid.
R24	Duplicate Entry	The receiving bank believes the entry duplicates one it already received.
R25	Addenda Error	The addenda record on the entry was invalid.
R26	Mandatory Field Error	A required field on the entry was missing or invalid.
R27	Trace Number Error	The entry's trace number was invalid.
R30	RDFI Not Participant in Check Truncation Program	The receiving bank does not take part in the check truncation program.
R32	RDFI Non-Settlement	The receiving bank could not settle the entry.
R33	Return of XCK Entry	A destroyed check entry was returned.
R35	Return of Improper Debit Entry	A debit was sent to an account or entry type that does not allow debits.
R36	Return of Improper Credit Entry	A credit was sent on an entry type that does not allow credits.
R37	Source Document Presented for Payment	The check behind the entry was also presented for payment.
R38	Stop Payment on Source Document	A stop payment was placed on the check behind the entry.
R39	Improper Source Document/Source Document Presented for Payment	The check behind the entry was improper, or was also presented for payment.

Testing return codes in sandbox

In sandbox, a payout to a counterparty whose externalBankAccount.accountNumber is 100XX is returned with code RXX. For example, 10001 returns R01 and 10003 returns R03. See the Sandbox guide for the full steps.