ACH Return Code List Explained: Full ACH Error Codes Guide

If an ACH payment fails, the bank does not just reject it silently.

Instead, it sends back a specific ACH return code.

This code explains exactly why the transaction failed.
If you handle payroll, direct deposits, billing, or online bank transfers, knowing these codes can save hours of confusion.

Here is the complete ACH return code list explained in simple language.

What Are ACH Return Codes

ACH return codes are short error labels used inside the Automated Clearing House network.

Each code starts with R followed by two numbers.

Example:

• R01

• R05

• R10

• R29

Each one represents a specific banking issue.

Most Common ACH Return Codes (Quick Reference)

Balance and Account Problems

R01 — Insufficient Funds
The account does not have enough money.

R02 — Account Closed
The receiving account is no longer active.

R03 — No Account / Unable To Locate
Account number does not exist.

R04 — Invalid Account Number Structure
Account format is incorrect.

Payment Authorization Issues

R05 — Unauthorized Debit to Consumer Account Using Corporate SEC Code
Wrong transaction classification used.

R07 — Authorization Revoked by Customer
Customer cancelled permission.

R10 — Customer Advises Unauthorized
Customer claims they never approved the charge.

R11 — Check Truncation Entry Return
Used when customer disputes check conversion.

Banking Status and Restrictions

R08 — Stop Payment Placed
Customer requested bank to block the transfer.

R09 — Uncollected Funds
Money exists but is not yet cleared.

R12 — Branch Sold to Another Bank
Account moved to a new institution.

R16 — Account Frozen
Bank placed restriction on account.

Administrative and Technical Errors

R13 — Invalid ACH Routing Number

R14 — Representative Payee Deceased

R15 — Beneficiary or Account Holder Deceased

R17 — File Record Edit Criteria

R18 — Improper Effective Entry Date

These often happen due to data entry mistakes or outdated records.

Less Common ACH Return Codes

Other return codes include:

• R20 Non-transaction account

• R23 Credit refused by receiver

• R24 Duplicate entry

• R29 Corporate customer advises unauthorized

• R31 Permissible return entry

• R33 Return of XCK entry

• R37 Source document presented for payment

• R51 Item related to RCK entry

These appear less frequently but still indicate specific transaction issues.

How Long ACH Returns Take

Most ACH returns happen within:

• 2 banking days for account problems

• Up to 60 days for unauthorized transaction disputes

Businesses should monitor return notifications daily to avoid repeated failures.

What To Do When You Receive an ACH Return Code

Follow this simple process.

Step 1: Identify the return code
Step 2: Read the meaning
Step 3: Contact the customer or employee if needed
Step 4: Correct the account or authorization issue
Step 5: Retry the payment only after fixing the cause

Never retry blindly. Some codes can lead to compliance penalties if ignored.

Why Understanding ACH Return Codes Matters

Knowing ACH return codes helps you:

• Fix payroll delays quickly

• Reduce failed direct deposits

• Prevent chargebacks

• Protect business cash flow

• Avoid bank compliance issues

For businesses handling many payments, this knowledge is essential.

ACH return codes are not random banking jargon. They are a structured system designed to explain exactly why a payment failed. Once you understand the ACH return code list, you can troubleshoot payment problems faster and keep your transactions running smoothly.

If you regularly send or receive electronic payments, keeping this list bookmarked is a smart move.