ACH Return Code R04 Meaning – Invalid Account Number Payroll Error
ACH return code R04 means invalid account number. Learn what causes R04, how to fix it, and how long payroll reprocessing takes.
Taylor Reed
2/13/20261 min read
What Does ACH Return Code R04 Mean?
ACH Return Code R04 means “Invalid Account Number.”
The receiving bank determined that the account number provided is not valid, even though it may look correctly formatted. Because of this, the ACH payroll or direct deposit was rejected and returned.
Plain English:
👉 The bank says the account number doesn’t match a valid account.
Is R04 the Same as R03?
No. They are similar but not the same.
CodeMeaningR03Account does not existR04Account number is invalid or fails bank validation
With R04, the account may exist, but the number doesn’t pass the bank’s checks.
What Causes ACH Return Code R04?
Most common causes:
One or more digits entered incorrectly
Account number missing digits
Extra digits added to account number
Wrong account type selected
Bank-specific account format rules
Payroll system validation mismatch
R04 often happens during new direct deposit setup or recent bank changes.
Who Is Responsible for an R04 Error?
It depends on how the information was entered.
Employee: entered incorrect account number
Employer: payroll keyed details incorrectly
System: formatting or validation issue
Regardless of fault, payroll cannot be completed until corrected.
What Happens After an ACH R04 Return?
Here’s what typically occurs:
Bank rejects the ACH transaction
Funds never reach the employee
Money is returned to employer
Payroll system flags payment as failed
Employer must correct bank details
Payroll must be reissued
Nothing happens automatically unless payroll takes action.
How Long Does It Take to Get Paid After R04?
Typical timelines after correction:
1–2 business days if reissued immediately
3–5 business days if approval is required
Longer if payroll cutoff was missed
Delays usually happen because payroll was not notified.
Will Payroll Automatically Retry After R04?
No, in most cases.
Payroll usually requires:
Manual update of bank details
Re-approval of payroll
Off-cycle or reissued payment
Employees should always contact payroll or HR.
What Should Employees Do Immediately?
Quick Action Checklist
Confirm correct account number with bank
Verify number of digits required
Confirm checking vs savings
Update bank details in payroll system
Notify payroll or HR
Ask for reissue date
Skipping the notification step causes most delays.
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