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| C02 | Incorrect transit/routing number | Routing number is no longer valid |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.
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