Return Codes

A return is a draft that is rejected before the transaction is settled. The return code summary lists the possible reasons for a draft to be returned, by code. Return reason codes apply to checking and savings account transactions and are defined by Electronic Funds Transfer (EFT) regulations that govern the Automated Clearing House.

The following terms are used in the code descriptions:

·    Originating Depository Financial Institution (ODFI) is the bank used to submit transactions on your behalf to the Federal Reserve. At the time this guide was created, the ODFI was Bank of the West.

·    Receiving Depository Financial Institution (RDFI) is the bank where your settlements are received for the transactions submitted through the Virtual Terminal.

In addition, when an RDFI receives an ACH entry that contains incorrect information, the error may cause the item to be rejected from automatic posting. Change codes allow the RDFI to send a message requesting the correction of information without returning the value of the entry.

A description of the return and change codes is given below.

Code

Description

R01

Insufficient funds. The available balance in the account cannot cover the dollar value of the entry.

R02

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

R03

No account/Unable to Locate Account. 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 open account. (Note: This Return Reason Code may not be used to return POP entries that do not contain an Individual Name.)

R04

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

R05

Unauthorized Debit to Consumer Account Using Corporate SEC Code (adjustment entries).

R06

Returned per ODFI. ODFI has requested that the RDFI return the ACH entry.

R07

Authorization revoked. The customer revoked the authorization previously provided to this ODFI for this transaction.

R08

Payment stopped or Stop Payment on Item. The receiver of a recurring debit transaction has stopped payment to a specific ACH debit.

R09

Uncollected funds. Sufficient book or balance ledger exists to satisfy the dollar value of the transaction, but the dollar value of transactions in the process of collection (for example, uncollected checks) brings the available and/or cash reserve balance below the dollar value of the debit entry.

R10

No authorization. Customer has notified the bank that this payment is not authorized to your company.

R11

Check truncation entry return. This reason for return should be used only if no other Return Reason Code is applicable. The RDFI should use the appropriate field in the addenda record to specify the reason for return (i.e., "exceeds dollar limit," "no match on ARP," "stale date," etc.).

R12

Account Sold to Another DFI. A financial institution may continue to receive entries destined for an account that has been sold to another financial institution. Because the RDFI no longer maintains the account and is unable to post the entry, it should return the entry to the ODFI.

R14

Representative payee deceased or unable to continue in that capacity. The representative payee is a person or institution authorized to accept entries on behalf of one or more other persons, such as legally incapacitated adults or minor children. The representative payee is either deceased or unable to continue in that capacity. The beneficiary is not deceased.

R15

Beneficiary or Account Holder (Other than the Representative Payee) Deceased.

(1) The beneficiary is the person entitled to the benefits and is deceased. The beneficiary may or may not be the account holder; or

(2) The account holder (acting in a non-representative payee capacity) is an owner of the account and is deceased.

R16

Account frozen. The funds in the account are unavailable due to specific action by the RDFI or by legal action.

R17

File record edit criteria. Fields not edited by the ACH operator are edited by the RDFI. If the entry cannot be processed by the RDFI, the fields causing the processing error must be identified in the addenda record of return.

R20

Non-transaction account. The ACH entry is destined for a non- transaction account. (For example, a brokerage account.) The customer can do one of the following:

·    Transfer funds to a transaction account (for example, a checking account).

·    Write a paper check.

·    Contact the brokerage to authorize an ACH transaction.

R21

Invalid company identification. The number used in the Company Identification field is not valid. The Return Reason Code will normally be used on CIE transactions.

R22

Invalid Individual ID number. The individual ID number is used to identify the account in CIE and MTE entries. The Receiver has indicated to the RDFI that the number with which the originator was identified is not correct.

R23

Credit entry refused by receiver. Receiver refuses credit entry because of one of the following:

·    Minimum amount required by Receiver has not been remitted

·    Exact amount required has not been remitted

·    Account subject to litigation and receiver will not accept transaction

·    Acceptance of transaction results in overpayment

·    Originator is not known by receiver

·    Receiver has not authorized the credit entry

R24

The RDFI has received what appears to be a duplicate entry (for example, the trace number, date, dollar amount and/or other data matches another transaction). This code should be used with extreme care. The RDFI should be aware that if a file has been duplicated, the Originator may have already generated a reversal transaction to handle the situation.

R29

Corporate customer advises not authorized. RDFI has been notified by the Receiver that the Originator of a given transaction has not been authorized to debit the Receiver’s account.

R33

Return of XCK Entry. RDFI, at its sole discretion, returns an XCK entry. This return reason code may only be used to return XCK entries. An XCK entry may be returned up to sixty days after its Settlement Date.

R37

Source Document Presented for Payment. The source document to which an ARC entry or a POP entry relates has been presented for payment. The Receiver may request immediate credit from the RDFI for an ARC entry or a POP entry for the reason described above. The request must be made in writing within fifteen (15) days after the RDFI sends or makes available to the Receiver information relating to that debit entry. The Receiver must also provide the RDFI with a Written Statement Under Penalty of Perjury that the source document was presented for payment. An RDFI using this Return Reason Code must transmit the return entry by its ACH Operator's deposit deadline for the return entry to be made available to the ODFI no later than the opening of business on the banking day following the sixtieth calendar day following the Settlement Date of the ARC entry or the POP entry.  

R38

Stop Payment on Source Document. The RDFI determines that a stop payment order has been placed on the source document to which the ARC entry relates. An RDFI using this Return Reason Code must transmit the return entry by its ACH Operator's deposit deadline for the return entry to be made available to the ODFI no later than the opening of business on the banking day following the sixtieth calendar day following the Settlement Date of the ARC entry to which the source document relates.

 

Codes to be Used by Federal Government Agencies Returning ENR Entries

R40

Return of ENR entry by Federal Government Agency (ENR only). The Federal Government Agency, at its sole discretion, returns an ENR entry. This return reason code may be used only to return ENR entries.

R41

Invalid transaction code (ENR only). Either the Transaction Code included in Field 3 of the Addenda Record does not conform to the ACH Record Format Specifications contained in Appendix Two (ACH Record Format Specifications) or it is not appropriate with regard to an automated enrollment entry. For example: Transaction Code "28," Pre-notification of Demand Debit Authorization, for an ENR sent to Social Security Administration pertaining to a direct deposit enrollment.

R42

Routing number/check digit error (ENR only). The Routing Number and the Check Digit included in Field 3 of the Addenda Record is either not a valid number or it does not conform to the Modulus 10 formula.

R43

Invalid DFI account number (ENR only). The consumer's or company's account number included in Field 3 of the Addenda Record must include at least one alphanumeric character.

R44

Invalid individual ID number/identification number. The Individual ID Number/ Identification Number provided in Field 3 of the Addenda Record does not match a corresponding ID number in the Federal Government Agency's records.

R45

Invalid individual name/company name. The name of the consumer or company provided in Field 3 of the Addenda Record either does not match a corresponding name in the Federal Government Agency's records or fails to include at least one alphanumeric character.

R46

Invalid representative payee indicator. The Representative Payee Indicator Code included in Field 3 of the Addenda Record has been omitted or it is not consistent with the Federal Government Agency's records.

Examples:

The Representative Payee Indicator Code is "zero," and Social Security's records indicate that payments should be sent to a representative payee on behalf of an entitled beneficiary;

or

The Representative Payee Indicator Code is "one," and Social Security's records indicate that there is no representative payee and the beneficiary may receive payments directly.

R47

Duplicate enrollment (ENR only). The entry is a duplicate of an automated enrollment entry previously initiated by a participant in the ENR automated enrollment program.

 

Codes for Return of RCK Entries

R50

State law affecting RCK acceptance. The RDFI is located in a state that has not adopted Revised Article 4 of the Uniform Commercial Code (1990 Official Text) and has not revised its customer agreements to allow for electronic presentment.

OR

The RDFI is located within a state that requires all canceled checks to a specific type of account to be returned to the Receiver within the periodic statement. An RCK entry that is returned using this Return Reason Code must be transmitted by the RDFI to its ACH Operator no later than midnight of the second banking day following the banking day of receipt of the presentment notice.

R51

Ineligible item. Item is Ineligible, Notice Not Provided, Signature Not Genuine, Item Altered, or Amount of Entry Not Accurately Obtained from Item (adjustment entries)

R52

Stop payment on item (adjustment entries). The RDFI determines that a stop payment order has been placed on the item to which the RCK entry relates. An RDFI using this Return Reason Code must transmit the return entry by its ACH Operator's deposit deadline for the return entry to be made available to the ODFI no later than the opening of business on the banking day following the sixtieth calendar day following the Settlement Date of the RCK entry to which the item relates.

R53

Item and ACH Entry Presented for Payment (adjustment entries). In addition to an RCK entry, the item to which the RCK entry relates has also been presented for payment.

R61

Misrouted Return. The financial institution preparing the return entry (the RDFI of the original entry) has placed the incorrect Routing Number in the Receiving DFI Identification field.

R62

Incorrect Trace Number. The Trace Number found in positions 07- 21 in the Addenda Record of the return entry is different from the trace number of the original entry.

R63

Incorrect Dollar Amount. The dollar amount in the Entry Detail Record of the return entry is different from the dollar amount of the original entry.

R64

Incorrect Individual Identification. The Individual Identification Number reflected in the Entry Detail Record of the return entry is different from the Individual Identification Number/Identification Number used in the original entry.

R65

Incorrect Transaction Code. The Transaction Code in the Entry Detail Record of the return entry is not the return equivalent of the Transaction Code in the original entry.

R66

Incorrect Company Identification. The Company Identification number used in the Company/Batch Header Record of the return entry is different from the Company Identification number used in the original entry.

R67

Duplicate Return. The ODFI has received more than one return for the same entry.

R68

Untimely Return. The return entry has not been sent within the established time frame.

R69

Multiple Errors. Two or more of the following are incorrect:

·    Original Entry Trace Number

·    Amount

·     Individual Identification Number/Identification Number

·     Company Identification

·    Transaction Code

R70

Permissible Return Entry Not Accepted. The ODFI has received a CCD or CTX return entry identified by the RDFI as being returned with the permission of the ODFI, but the ODFI has not agreed to accept the entry.

R71

Misrouted Dishonored Return. The financial institution preparing the dishonored return entry (the ODFI of the original entry) has placed the incorrect Routing Number in the Receiving DFI Identification field.

R72

Untimely Dishonored Return. The dishonored return entry has not been sent within the designated timeframe.

R73

Timely Original Return. The RDFI is certifying that the original return entry was sent within the designated timeframe.

R74

Corrected Return. The RDFI is correcting a previous return entry that was dishonored because it contained incomplete or incorrect information.

R80

Cross-Border Payment Coding Error. The cross-border entry is being returned due to one or more of the following conditions:

·    Invalid Foreign Exchange Indicator

·    Invalid ISO Originating Currency Code

·    Invalid ISO Destination Currency Code

·    Invalid ISO Destination Country Code

·    Invalid Transaction Type Code

R81

Non-Participant in Cross-Border Program. The cross-border entry is being returned because the Originating Gateway Operator does not have an agreement with the ODFI to process cross-border entries.

R82

Invalid Foreign Receiving DFI Identification. The reference used to identify the Foreign Receiving DFI of an outbound cross-border entry is invalid.

R83

Foreign Receiving DFI Unable to Settle. The cross-border entry is being returned due to settlement problems in the foreign payment system.

R84

Entry Not Processed by OGO. The cross-border entry has not been processed and is being returned at the OGO's discretion because the processing of such entry may expose the OGO to excessive risk.

150

Amount over authorized limit.

151

Denied account access

152

Invalid entry description

153

Invalid account number

154

Invalid bank transit routing number

155

Non-participating bank

156

Invalid transaction date

157

Account closed

158

Check number missing

159

Duplicate item

160

Stale date

161

Post-dated too far in the future

162

Item not found

163

Item cancelled

164

Missing data

C01

Incorrect account number

C02

Incorrect transit route

C03

Incorrect account number and bank route

C04

Incorrect account name

C05

Incorrect trans code

C06

Incorrect account number and account type

C07

Incorrect account number, route, and account type

C08

Incorrect individual ID

C10

Incorrect company name

C11

Incorrect company ID

C12

Incorrect company name and ID

C13

Addenda format error

M

Account modification

S

Stop applied

U

Uncollectable – missing return reason