ACH Returns
ACH Return Codes, Return Reasons, and Return Types
An ACH return is generated by a Receiving Depository Financial Institution (RDFI) in response to an ACH transaction that has been initiated, but cannot be processed. This occurs for many reasons—in fact, there are more than 80 “ACH Return Codes”, and each corresponds to a different reason for the return.
ACH Returns Primer
Administrative Returns must stay below three percent. This percentage is calculated based on ACH debit returns for the preceding 60 days on the following return reason codes: R02, R03 and R04.
Unauthorized Returns must stay below 0.5 percent. This percentage is calculated based on ACH debit returns for the preceding 60 days on the following return reason codes: R05, R07, R10, R29 and R51.
Overall Returns must stay below 15 percent. This percentage is calculated based on ACH debit returns for the preceding 60 days and includes all return reason codes.
NSF Returns
NSF Returns have no specific threshold by themselves; however, these returns contribute to the Overall Return rate (see above) and make up the largest number of returns, by volume. NSF Returns include R01 and R09.
ACH Return Rate Limits
Your production apps needs to collectively stay below the Sila Limit.
| Return Type | NACHA Limit | Sila Limit |
| Administrative Return | 3% | 2.50% |
| Unauthorized Return | 0.50% | 0.40% |
| Overall Return Rate | 15% | 14.00% |
Sila Best Practice for ACH Return Code R01
Request bank account balance data before initiating an ACH debit using the get_balance endpoint and available_balance.
Notify the user they have an insufficient balance and either deposit funds into the linked account, or link to a different account.
Note: A separate Plaid subscription is required. Ask your account representative for preferred pricing from Plaid.
Sila Best Practice for ACH Return Code R02
Notify the user their linked account is frozen and to link a new account.
Sila Best Practice for ACH Return Code R03
The KYC credentials provided by the user do not match the name on the linked account. This may be potential fraud or a clerical error on the part of the user i.e. linking an account to a Maiden name versus married name. Be sure your UI clearly indicates the user should use the name that appears on their government ID and any linked accounts.
Notify the user their linked account is frozen and ask the user to /register and /request_kyc and /link_account.
Sila Best Practice for ACH Return Code R08
Notify your CX team the account holder may be a victim of possible fraud.
Sila Best Practice for ACH Return Code R09
Use the /get_account_balance endpoint before initiating an ACH Debit and verify you are using available_balance to prevent returns for insufficient funds. Optionally use the /update_account endpoint to freeze the account for 2-3 business days.
Sila Best Practice for ACH Return Code R10
Notify your CX team the account holder may be a victim of possible fraud.
Sila Best Practice for ACH Return Code R16
Sila banking operations will automatically freeze any accounts that return an R16. The account holder is not permitted to use Sila services and you will see the following error message The requested handle is forbidden access to the Sila platform
ACH Return Codes
The following return codes will result in an end user bank account being are automatically frozen: 'R02', 'R03', 'R04', 'R07', 'R08', 'R10', 'R14', 'R15', 'R16', 'R20', 'R29'
Response message: "Bank account is frozen. Possible name match error. Check /get_accounts for details."
- If you call /get_accounts and do not see a fuzzy name match issue then the next step would be to call /get_transactions to see if the end user has received one of the above return codes.
| RETURN CODE | RETURN REASON | RETURN TYPE |
|---|---|---|
| R01 | Insufficient Funds | Return |
| R02 | Account Closed | Administrative Return |
| R03 | No Account/ Unable to Locate Account | Administrative Return |
| R04 | Invalid Account Number Structure | Administrative Return |
| R05 | Unauthorized Debit to Consumer Account Using Corporate SEC Code | Unauthorized Return |
| R06 | Returned per ODFI’s Request | Return |
| R07 | Authorization Revoked by Customer | Unauthorized Return |
| R08 | Payment Stopped | Return |
| R09 | Uncollected Funds | Return |
| R10 | Customer Advises Not Authorized | Unauthorized Return |
| R11 | Check Truncation Entry Return | Return |
| R12 | Account Sold to Another DFI | Return |
| R13 | Invalid ACH Routing Number | Reject/ Return |
| R14 | Representative Payee Deceased or Unable to Continue in That Capacity | Return |
| R15 | Beneficiary or Account Holder Deceased | Return |
| R16 | Account Frozen/Entry Returned Per OFAC Instruction | Return |
| R17 | File Record Edit Criteria/Entry with Invalid Account Number | Return |
| R18 | Improper Effectove Entry Date | Reject/ Return |
| R19 | Amount Field Error | Reject/ Return |
| R20 | Non- Transaction Account | Reject/ Return |
| R21 | Invalid Company Identification | Return |
| R22 | Invalid Individual ID Number | Return |
| R23 | Credit Entry Refused by Receiver | Return |
| R24 | Duplicate Entry | Return |
| R25 | Addenda Error | Return/Reject |
| R26 | Mandatory Field Error | Return/Reject |
| R27 | Trace Number Error | Return/Reject |
| R28 | Routing Number Check Digit Error | Return/Reject |
| R29 | Corporate Customer Advises Not Authorized | Unauthorized Return |
| R30 | RDFI Not Participant in Check Truncation Program | Return/Reject |
| R31 | Permissible Return Entry (CCD and CTX only) | Return |
| R32 | RDFI Non- Settlement | Return/Reject |
| R33 | Return of XCK Entry | Extended Return |
| R34 | Limited Participation DFI | Return/Reject |
| R35 | Return of Improper Debit Entry | Return/Reject |
| R36 | Return of Improper Credit Entry | Return/Reject |
| R37 | Source Document Presented for Payment | Extended Return |
| R38 | Stop Payment on Source Document | Extended Return |
| R39 | Improper Source Document/ Source Document Presented for Payment | Return |
| R40 | Return of ENR Entry by Federal Government Agency | Return - ENR Only |
| R41 | Invalid Transaction Code | Return - ENR Only |
| R42 | Routing Number/Check Digit Error | Return - ENR Only |
| R43 | Invalid DFI Account Number | Return - ENR Only |
| R44 | Invalid Individual ID Number/ Identification Number | Return - ENR Only |
| R45 | Invalid Individual Name/Company Name | Return - ENR Only |
| R46 | Invalid Representative Payee Indicator | Return - ENR Only |
| R47 | Duplicate Enrollment | Return - ENR Only |
| R50 | State Law Affecting RCK Acceptance | Return |
| R51 | Item Related to RCK Entry is Ineligible or RCK Entry is Improper. | Unauthorized Return |
| R52 | Stop Payment on Item Related to RCK Entry | Extended Return |
| R53 | Item and RCK Entry Presented for Payment | Extended Return |
| R61 | Misrouted Return | Dishonored Return May be used for all Entries except IAT |
| R62 | Return of Erroneous or Reversing Debit | Dishonored Return May be used for all Entries except IAT |
| R67 | Duplicate Return | Dishonored Return May be used for all Entries except IAT |
| R68 | Untimely Return | Dishonored Return May be used for all Entries except IAT |
| R69 | Field Error(s) | Dishonored Return May be used for all Entries except IAT |
| R70 | Permissible Return Entry Not Accepted/ Return Not Requested by ODFI | Dishonored Return May be used for all Entries except IAT |
| R71 | Misrouted Dishonored Return | Contested Dishonored Return May be used for all Entries except IAT |
| R72 | Untimely Dishonored Return | Contested Dishonored Return May be used for all Entries except IAT |
| R73 | Timely Original Return | Contested Dishonored Return May be used for all Entries except IAT |
| R74 | Corrected Return | Contested Dishonored Return May be used for all Entries except IAT |
| R75 | Return Not a Duplicate | Contested Dishonored Return May be used for all Entries except IAT |
| R76 | No Errors Found | Contested Dishonored Return May be used for all Entries except IAT |
| R77 | Non-Acceptance of R62 Dishonored Return | Contested Dishonored Return May be used for all Entries except IAT |
| R80 | IAT Entry Coding Error | Return |
| R81 | Non-Participant in IAT Program | Return |
| R82 | Invalid Foreign Receiving DFI Identification | Return |
| R83 | Foreign Receiving DFI Unable to Settle | Return |
| R84 | Entry Not Processed by Gateway | Return |
| R85 | Incorrectly Coded Outbound International Payment | Return |
| R85 | Incorrectly Coded Outbound International Payment | Return |
Updated about 1 year ago