Guide to ACH return codes

There are a few different ACH return codes that you may encounter as a business owner. Understanding what these codes mean and how to address them is key to ensuring the smooth running of your company's finances. Here is a guide to some of the most common ACH return codes:

Return Code Description 0 Insufficient Funds 1 Account Closed 2 Payment Stopped 3 Incorrect Account Number 4 Unauthorized

5 Invalid ACH File 6 Duplicate Entry 7 Credit Entry 8 Payment not Processed 9 Reserved for Future Use 10 Partial Payment 11 Non-Sufficient Funds 12 Closed Account 13 Fraudulent Transaction 14 Stop Payment.

Return Code 0: Insufficient Funds

This code is pretty self-explanatory - it means that the account holder did not have enough money to cover the transaction. If you receive this code, you will need to contact the account holder to ask for payment.

Return Code 1: Account Closed

If you receive this code, it means that the bank has closed the account associated with the ACH transaction. It is possible that the customer requested this closure. You should contact your customer to verify this.

Return Code 2: Payment Stopped

This code means that the bank has stopped payment on the transaction because they suspect fraud, or something suspicious about it. This often occurs when an account owner suddenly switches banks and does not update their direct deposit information. If you receive this code, you should reach out to your customer to confirm the account information.

Return Code 3: Incorrect Account Number

If you receive this code, it means that either the account number or the routing number associated with the transaction was incorrect. This can often be caused by a typo. You should reach out to your customer to confirm the account information.

Return Code 4: Unauthorized

If you receive this code, it means that the bank did not authorize the transaction. This could be because of incorrect account or routing information, or because the customer has blocked ACH transactions from your company. You should reach out to your customer to confirm the account information and ask why the transaction was denied.

Return Code 5: Invalid ACH File

If you receive this code, it means that there was something wrong with the ACH file that you submitted. This could be caused by a typo or an incorrect account number. You should reach out to your customer to confirm the account information and resubmit the ACH file with the correct information.

Return Code 6: Duplicate Entry

This code means that an entry for this transaction already exists in the bank's system. When submitting your ACH files, you want to be sure not to submit a transaction more than once. If you accidentally do so, the duplicate entry will be rejected and you will need to resubmit your ACH file.

Return Code 7: Credit Entry

If you receive this code, it means that the transaction was a credit entry for an account holder. You can find out what information they would like next to CREDIT ENTRY DESCRIPTION in the chart above. For example, if CREDIT ENTRY DESCRIPTION says "third quarter invoice payment", you should reach out to the customer to confirm what invoice they are referring to.

Return Code 8: Payment not Processed

This code means that, while the transaction was submitted successfully, there was some other issue which prevented it from being processed. This typically occurs because of incorrect or missing information in the ACH file. You should reach out to your customer to confirm the account information and resubmit the ACH file with the correct information.

Return Code 9: Reserved for Future Use

This code is currently not in use, but it may be used in the future for some other purpose. You can safely ignore this code.

Return Code 10: Nonsufficient Funds This code is pretty self-explanatory - it means that the account holder did not have enough money to cover the transaction. If you receive this code, you will need to contact the account holder to ask for payment.

Return Code 11: Invalid Date

This code means that there was something wrong with the date on the ACH file that you submitted. This could be caused by a typo or an incorrect date. You should reach out to your customer to confirm the account information and resubmit the ACH file with the correct information.

Return Code 12: Canceled by Customer

If you receive this code, it means that the account holder has canceled the transaction. You should ask your customer why they cancelled the transaction and confirm that it's okay to resubmit it.

Return Code 13: Stopped Payment by Payer

If you receive this code, it means that the account holder has stopped payment on the transaction. This could be for a variety of reasons. You should ask your customer why they stopped payment and confirm that it's okay to resubmit it.

Return Code 14: Out of Business-Payer This code means that the account holder has closed their bank account. Typically, you would need to check with them to see if they opened a new account anywhere else. If not, you will need to ask them for payment.

Return Code 16: Refer to Maker

This code means that the transaction is missing some information, and the bank cannot process it until they receive that information. You should reach out to your customer for more information on why the transaction was rejected and how they want you to handle this in the future.

Return Code 17: Stop Payment on Original Entry This code means that the account holder has stopped payment on the original transaction. You should ask your customer why they stopped payment and confirm that it's okay to resubmit it.

Return Code 18: Refer to Addenda Record

This code means that you will need to reference an addenda record from your ACH file in order to complete the transaction. This is most likely because the account holder does not have enough money in their account, so you should reach out to them to confirm if they would like for you to resubmit the transaction.

Return Code 19: Credit Reversal

This code means that the account holder has requested a credit reversal on the transaction. You should reach out to them to confirm why they want this and how you should proceed.

Return Code 21: Duplicate Entry

This code means that there was already a transaction for this account number on the date that you submitted your ACH file. You should ask your customer why they requested a duplicate transaction and how you should proceed.

Return Code 22: Payment Canceled

This code means that the account holder has canceled the payment for this transaction. You should ask your customer why they canceled the payment and reach out to them to confirm if it's okay to resubmit.

Return Code 23: No Account/Unable to Locate Account

This code means that the account number was not found by the bank. This might be because you typed it in incorrectly, or because the account has been closed. You should check with your customer to see if they have another account with this institution.

Return Code 24: Currently Not an Account Holder

This code means that the account holder is no longer an account holder with the bank. You should check with your customer to see if they have another account with this institution.

Return Code 25: Invalid Company Name

This code means that there was something wrong with the company name on the ACH file that you submitted. This might be because your software automatically applied the wrong formatting. You should check with your customer if they need you to resubmit it with a different name.