ACH Payment Return Codes

For merchants dealing with Automated Clearing House Network rejections, help is on the way thanks to the ACH's detailed code system.

When it comes to processing payments through the Automated Clearing House (ACH), no one likes being rejected. It feels especially hurtful when you don't know why exactly you got turned down. Rejection can bring on sadness, anxiety, and often a lot of anger.

Fortunately for those dealing with the emotional pain and disappointment that comes from a payment being rejected, the ACH is ready to see you through this difficult time.

No more reasons to feel alone or isolated.

The good people at the Automated Claiming House understand the sense of loss and confusion that comes with suddenly having a payment rejected in the ACH's payments system. How could this happen to you? Why didn't you see it coming?

To help you come to terms with a payment rejection, the Automated Clearance House has implemented accurate and precise descriptions indicating exactly why you got the thumbs down.

The ACH does this via a highly detailed code system. These codes serve as standardized identifiers that get to the heart of where things went wrong. Each code starts with the letter “R” and is followed by a two-digit number.

When you've been turned down, you'll see the letter “R” next to the rejected transaction on your ACH transaction statement. “R” stands for “return.” That means the transaction has been rejected. Next to the “R” you will see a two-digit number. That number corresponds to the precise reason your transaction was not completed.

As with credit card declines, ACH returns do not happen immediately upon payment. Returns on ACH payments from business bank accounts might take one to two days, and returns on ACH payments from consumer bank accounts can range anywhere from one to 60 days.

Lots of codes. But also lots of support.

Go to ACH's online site, and you will find a list of all the various return codes. For example, R16 indicates a bank account was frozen, or R04 signifies an invalid account.

There are quite a few return codes. Over fifty last count. But that's because ACH wants to be as specific as possible in telling you what happened. These codes can be further organized by five return categories: Administration, Account-related, Authorization-related, Fraud, and Bank/Internal error. These return types give you a quick way to understand where problems started. For example, R28. This represents a routing number check-digit error and is filed under the category of “Internal Error.”

Each of the five return types also includes advice on how to address the return issue. For example, in the case of routing number error R28, the advice is: “Something went wrong on the platform, and we are taking care of it for you.”

Now, that's the kind of concerned attention someone who has been rejected can use to move on in their business dealings with confidence and esteem restored.

The first step in finding approval is not to blame yourself.

Some merchants may be quick to fault themselves for a rejected ACH transaction. However, rejection should not define your worth as a successful businessperson. What is important is to eliminate self-critical thoughts and learn from your experience, and the ACH Codes can help you do this by:

• Readily identifying payment issues and allowing your business to address problems quickly
• Creating transparency between your bank and your business, thus helping you resolve issues efficiently
• Letting you improve your transaction success rate by identifying recurring issues and taking proactive steps to reduce failures
• Allowing you to stay compliant with regulatory guidelines through continual monitoring of codes

Turning rejection into resiliency.

Qualpay wants to turn your rejection into an opportunity to learn, improve, and grow.

As a Qualpay customer, you can easily review your ACH returns by accessing the Reports section in our Merchant Manager and selecting “ACH Returns.” Here you can view and take appropriate action on all your ACH returns.

To learn more, contact our sales team. They'll show you how to move from repudiation to ratification, from pain to power, from loss to continued business success.

To get started with Qualpay, take our Savings Challenge or contact our sales team.