Understanding ACH Return and Notification of Change (NOC) Codes

ACH (Automated Clearing House) payments may be returned or flagged for correction for a variety of reasons. This guide explains why these issues occur and what the associated codes mean.

Why ACH Payment Returns Happen

ACH payments can be returned due to issues such as insufficient funds, invalid account details, or authorization problems. Below are the most common categories and codes:

Insufficient Funds

  • R01: Insufficient Funds
    • The account lacks the funds required to complete the transaction.

Account Issues

  • R02: Account Closed
  • R03: No Account/Unable to Locate Account
  • R04: Invalid Account Number
    • These occur due to incorrect or deactivated account information.

Authorization Issues

  • R07: Authorization Revoked by Customer
  • R10: Customer Advises Not Authorized
    • The account holder disputes or revokes authorization.

Stop Payments

  • R08: Payment Stopped
    • The account holder has requested to stop the payment.

Administrative Errors

  • R05: Unauthorized Debit Using Corporate SEC Code
  • R17: File Record Edit Criteria
    • Errors in transaction formatting or entry codes.

Banking Errors

  • R13: Invalid Routing Number
  • R26: Mandatory Field Error
    • Problems caused by bank processing or missing data.

Disputes and Fraud

  • R29: Corporate Customer Advises Not Authorized
  • R51: RCK Entry Improper or Ineligible
    • Indicates possible fraud or improper data.

Technical or Procedural Failures

  • R20: Non-Transaction Account
  • R24: Duplicate Entry
    • Transactions sent to ineligible accounts or duplicated.

Compliance and Legal Issues

  • R16: Account Frozen
    • Regulatory holds or legal action against the account.

Full List of Common ACH Return Codes

  • R01: Insufficient Funds
  • R02: Account Closed
  • R03: No Account/Unable to Locate Account
  • R04: Invalid Account Number
  • R05: Unauthorized Debit to Consumer Account
  • R06: Returned per ODFI's Request
  • R07: Authorization Revoked by Customer
  • R08: Payment Stopped
  • R09: Uncollected Funds
  • R10: Customer Advises Not Authorized

Less Common ACH Return Codes

Includes R11 through R77. For complete reference, consult NACHA guidelines or contact support.

Notifications of Change (NOC) Codes

NOC codes indicate that a bank account's information has changed. Below are common codes and meanings:

Code Reason Description
C01 Incorrect bank account number Account number is invalid or improperly formatted
C02 Incorrect transit/routing number Routing number is no longer valid
C03 Both account and routing number incorrect Both must be updated
C04 Bank account name change Customer name changed or entered incorrectly
C05 Incorrect payment code Account type mismatch (checking vs. savings)
C06 Incorrect account number and payment code Both need updating
C07 Routing, account number, and code incorrect All three fields must be corrected
C09 Incorrect individual ID number ID used in the entry is incorrect
C10 Incorrect company name Must update company name
C11 Incorrect company ID Must update company ID
C12 Incorrect company name and ID Both name and ID must be updated

If you're unsure about a specific return or NOC code, or need help resolving a payment issue, please contact SigmaMD support for further assistance.