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.
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.
Letter requirements
The account is active and in good standing
The stop payment has been removed
iii. The Company ID: 3383693141 has been added to allow debits