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.

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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.

ACH Return Codes

RETURN CODERETURN REASONRETURN TYPE
R01Insufficient FundsReturn
R02Account ClosedAdministrative Return
R03No Account/ Unable to Locate AccountAdministrative Return
R04Invalid Account Number StructureAdministrative Return
R05Unauthorized Debit to Consumer Account Using Corporate SEC CodeUnauthorized Return
R06Returned per ODFI’s RequestReturn
R07Authorization Revoked by CustomerUnauthorized Return
R08Payment StoppedReturn
R09Uncollected FundsReturn
R10Customer Advises Not AuthorizedUnauthorized Return
R11Check Truncation Entry ReturnReturn
R12Account Sold to Another DFIReturn
R13Invalid ACH Routing NumberReject/ Return
R14Representative Payee Deceased or Unable to Continue in That CapacityReturn
R15Beneficiary or Account Holder DeceasedReturn
R16Account Frozen/Entry Returned Per OFAC InstructionReturn
R17File Record Edit Criteria/Entry with Invalid Account NumberReturn
R18Improper Effectove Entry DateReject/ Return
R19Amount Field ErrorReject/ Return
R20Non- Transaction AccountReject/ Return
R21Invalid Company IdentificationReturn
R22Invalid Individual ID NumberReturn
R23Credit Entry Refused by ReceiverReturn
R24Duplicate EntryReturn
R25Addenda ErrorReturn/Reject
R26Mandatory Field ErrorReturn/Reject
R27Trace Number ErrorReturn/Reject
R28Routing Number Check Digit ErrorReturn/Reject
R29Corporate Customer Advises Not AuthorizedUnauthorized Return
R30RDFI Not Participant in Check Truncation ProgramReturn/Reject
R31Permissible Return Entry (CCD and CTX only)Return
R32RDFI Non- SettlementReturn/Reject
R33Return of XCK EntryExtended Return
R34Limited Participation DFIReturn/Reject
R35Return of Improper Debit EntryReturn/Reject
R36Return of Improper Credit EntryReturn/Reject
R37Source Document Presented for PaymentExtended Return
R38Stop Payment on Source DocumentExtended Return
R39Improper Source Document/ Source Document Presented for PaymentReturn
R40Return of ENR Entry by Federal Government AgencyReturn - ENR Only
R41Invalid Transaction CodeReturn - ENR Only
R42Routing Number/Check Digit ErrorReturn - ENR Only
R43Invalid DFI Account NumberReturn - ENR Only
R44Invalid Individual ID Number/ Identification NumberReturn - ENR Only
R45Invalid Individual Name/Company NameReturn - ENR Only
R46Invalid Representative Payee IndicatorReturn - ENR Only
R47Duplicate EnrollmentReturn - ENR Only
R50State Law Affecting RCK AcceptanceReturn
R51Item Related to RCK Entry is Ineligible or RCK Entry is Improper.Unauthorized Return
R52Stop Payment on Item Related to RCK EntryExtended Return
R53Item and RCK Entry Presented for PaymentExtended Return
R61Misrouted ReturnDishonored Return May be used for all Entries except IAT
R62Return of Erroneous or Reversing DebitDishonored Return May be used for all Entries except IAT
R67Duplicate ReturnDishonored Return May be used for all Entries except IAT
R68Untimely ReturnDishonored Return May be used for all Entries except IAT
R69Field Error(s)Dishonored Return May be used for all Entries except IAT
R70Permissible Return Entry Not Accepted/ Return Not Requested by ODFIDishonored Return May be used for all Entries except IAT
R71Misrouted Dishonored ReturnContested Dishonored Return May be used for all Entries except IAT
R72Untimely Dishonored ReturnContested Dishonored Return May be used for all Entries except IAT
R73Timely Original ReturnContested Dishonored Return May be used for all Entries except IAT
R74Corrected ReturnContested Dishonored Return May be used for all Entries except IAT
R75Return Not a DuplicateContested Dishonored Return May be used for all Entries except IAT
R76No Errors FoundContested Dishonored Return May be used for all Entries except IAT
R77Non-Acceptance of R62 Dishonored ReturnContested Dishonored Return May be used for all Entries except IAT
R80IAT Entry Coding ErrorReturn
R81Non-Participant in IAT ProgramReturn
R82Invalid Foreign Receiving DFI IdentificationReturn
R83Foreign Receiving DFI Unable to SettleReturn
R84Entry Not Processed by GatewayReturn
R85Incorrectly Coded Outbound International PaymentReturn
R85Incorrectly Coded Outbound International PaymentReturn

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