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Common ACH Reject Codes Mean And What To Do About Them
Common ACH Reject Codes Mean And What To Do About Them
Emily Bowen avatar
Written by Emily Bowen
Updated over a week ago

What ACH Reject Codes Mean And How To Fix Them

If you receive a return other than R01 NSF (R01) or (R09) Uncollected Funds, our system will “e-block” the new transaction, to that fatal bank account number. You or your customer may be required to provide a bank letter stating the account is no longer frozen, closed or has a dispute against it, etc. before we can remove the “e-block”.

The most common fatal returns codes are as follows and recommended actions on how to handle them: PLEASE REMOVE CUSTOMERS FROM BILLING UNTIL THE REQUIRED ACTION IS TAKEN.

R02 / E 02 (Closed acct) – Remove customer from future billing, unless bank letter states accounts in good standing

R03 / E 03 (No account / Unable to locate account) -Verify the customers banking information with a voided check or a bank letter, ensure no key in errors occurred and that the correct account type is selected (checking/savings).

R04 / E 04 (Invalid acct)- Verify the customer’s banking information with a voided check or a bank letter, ensure no key in errors occurred and that the correct account type is selected (checking/savings).

R05 / E 05 (Unauthorized debit) Verify with customer if bank account is personal or corporate. If personal change billing to PPD. If corporate, request customer contact their bank.

R07 / E 07 (Authorization revoked by consumer)- Remove customer from future billing, unless new bank letter received stating account is in good standing

R08 / E 08 (Stop Payment)- Remove customer from future billing, unless new bank letter received stating account is in good standing

R10 / E 10 (Consumer advises not authorized)- Remove customer from future billing, unless new bank letter received stating account is in good standing

R11 / E11 (Customer Advises Entry Not in Accordance with the Terms of the Authorization) Remove customer from future billing, unless new bank letter received stating account is in good standing

R13 / E 13 (RDFI Not Qualified to Participate)- Remove from future billing, the account type may not support ACH

R16 / E 16 (Frozen account)- Remove customer from future billing, unless new bank letter received stating account is in good standing

R20 / E 20 (Non – Transaction Account)- Remove from future billing

R29 / E 29 (Corp Customer advises not authorized)- Please provide your customer our company ID # 1383693141, request a bank letter to reflect this change, in order to remove the block

R51 / E 51 (Item is Ineligible, Notice not provided, etc.) - Remove from future billing

If you have questions regarding this report or if a customer corrects the fatal code with their bank and notifies you of this correction, please notify us at 800-720-3323 option 4.

For Unauthorized returns R05/R07/R08/R10/R11/R29 The following information is required to be on the bank letter. Once bank letter has been received, please send it to [email protected] and ask that the e-code be remove from the account.

For R16 Account Frozen returns, if customer states account is open and in good standing the same bank letter must be received.

Removal of E-Code Block:

The E-Code feature is not an overall opt-in/ opt-out feature.

On a bank account basis an individual E-Code block can be removed at a merchant request. Below are the required steps for a merchant to request the removal of an E-Code return.

  1. Merchant required to provide a letter from the customer’s bank on bank letterhead to Paya Services. Letters can be sent via Email or fax to Customer Support with request to remove a bank account number from the E-Code Return List.

  2. Letter requirements

  1. The account is active and in good standing

  2. The stop payment has been removed

iii. The Company ID: 3383693141 has been added to allow debits

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