What is a Return?

R01: Insufficient funds

The available and / or cash reserve balance is not sufficient to cover the dollar value of the payment.

The client will need to add funds to their account. You may retry this transaction up to two more times maximum within 30 days of the original payment date.

R02: Account closed

A previously active account has been closed by action of the client or the client's bank.

Contact the client for a different bank account, or for another form of payment.

R03: No account / Unable to locate account

The account number, account type, or account holder name does not correspond to the individual or business entity submitted with the payment information.

The client may have mistyped or submitted incorrect ACH account information such as:

• Incorrect account number
• Incorrect account type (checking v. savings)
• Incorrect account holder name

R04: Invalid account number structure

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

The client may have mistyped their account number or submitted a member number instead of an ACH account number.

The client should verify their information with their bank or with the numbers at the bottom of their check.

R05: Unauthorized debit from account

The client informed their bank that the payment was unauthorized.

The Firm shall be charged $25 for this kind of return.

Immediately cancel any recurring payments entered for this bank account. This will prevent additional transactions from being returned while you address the issue with the client.

Contact the client and resolve any issues that caused the transaction to be disputed. The client can use a different form of payment or a different bank account.

Unfortunately, there is no dispute resolution available to you within the ACH Network. If your client continues to claim the transaction was not authorized, you will need to obtain their payment using a different form of payment even though you may have proof that it was actually authorized.

R07: Authorization revoked by customer

The client, who previously authorized ACH payment, has revoked authorization for this payment. The payment must be returned no later than 60 days from settlement date and the client must sign an affidavit.

The Firm shall be charged $25 for this kind of return.

Immediately cancel any recurring payments entered for this bank account. This will prevent additional transactions from being returned while you address the issue with the client.

Contact the client and resolve any issues that caused the transaction to be disputed. The client can use a different form of payment or a different bank account.

Unfortunately, there is no dispute resolution available to you within the ACH Network. If your client continues to claim the transaction was not authorized, you will need to obtain their payment using a different form of payment even though you may have proof that it was actually authorized.

R08: Payment stopped

The client may stop payment on any specific ACH debit. The client's bank should verify the client’s intent when a request for stop payment is made to ensure this is not intended to be a revocation of authorization.

The client can pay with a different form of payment or a different bank account.

If paying from the same bank account, the client will need to contact their bank and remove the Stop Payment and should provide the Firm with supporting documentation that the Stop Payment was removed.

R10: Not Authorized

The client informed their bank that the payment was unauthorized. The Firm shall be charged $25 for this kind of return.

Immediately cancel any recurring payments entered for this bank account. This will prevent additional transactions from being returned while you address the issue with the client.

Contact the client and resolve any issues that caused the transaction to be disputed. The client can use a different form of payment or a different bank account.

Unfortunately, there is no dispute resolution available to you within the ACH Network. If your client continues to claim the transaction was not authorized, you will need to obtain their payment using a different form of payment even though you may have proof that it was actually authorized.

R11: Customer Advises Entry Not in Accordance with the Terms of the Authorization

There is an error or defect in the payment such that the payment does not conform to the terms of the authorization. (i.e., “an incorrect amount,” “payment was debited earlier than authorized” ).

Regardless of the type of defect, the payment that was submitted for the client is now deemed unauthorized.
The Firm shall be charged $25 for this kind of return.

The Firm can correct the underlying error, e.g. correct the amount, the date, and resubmit the corrected payment.  The new payment must be submitted within 60 days of the R11 Return.

If a correction and new payment is not possible, the resolution would be similar to R10 above.

R15: Account holder deceased

The account holder is deceased.

The client should submit a different form of payment or use a different account.

R16: Account frozen

The funds in the account are unavailable due to specific action taken by the the client's bank or by legal action or regulation.

Obtain a different form of payment. The Firm will not be able to process payments using this bank account until it is un-frozen.

R20: Non-transaction account

The account submitted by the client is not eligible for transactions. This would include either an account against which transactions are prohibited or limited (e.g., an IRA or HSA account).

The client can use a different form of payment or a different bank account.

R29: Corporate customer advises not authorized

The business client informed their bank that the payment was unauthorized. The Firm shall be charged $25 for this kind of return.

Immediately cancel any recurring payments entered for this bank account. This will prevent additional transactions from being returned while you address the issue with the client.

Contact the client and resolve any issues that caused the transaction to be disputed. The client can use a different form of payment or a different bank account.

Unfortunately, there is no dispute resolution available to you within the ACH Network. If your client continues to claim the transaction was not authorized, you will need to obtain their payment using a different form of payment even though you may have proof that it was actually authorized.