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ACH returns & exception handling

Learn about different ACH return scenarios, and how to handle errors.

When an ACH return is received, the associated payment is automatically reversed by our financial institution partners. Moov automatically processes ACH returns and uses an account’s moov-wallet to represent the effects of the funds reversal. Moov treats returns differently depending on the timing and the payment use case.

Receiving an ACH return will update the overall transfer status to:

  • failed: transfer returned/failed during clearing period or before funds movement
  • reversed: transfer returned/failed after clearing period or marked completed

Scenarios

The following sections describe various return and exception handling scenarios.

Debit return received during clearing period

This is an example where the source achDetails status is originated .

  • If the source payment method type = ach-debit-fund:
    • The transfer status will update to failed, with no effect to moov-wallet balances
  • If the source payment method type = ach-debit-collect:
    • The transfer status will update to failed, with no effect to moov-wallet balances

Debit return received after clearing period

This is an example where the source achDetails status is completed.

  • If the source payment method type = ach-debit-fund:
    • The transfer status will update to reversed
    • The transfer amount will be deducted from the sourcemoov-wallet balance
  • If the source payment method type = ach-debit-collect:
    • The transfer status will update to reversed
    • The transfer amount will be deducted from the destination moov-wallet balance

Credit returned or failed

This is an example where the source achDetails status is completed and the destination’s achDetails status is completed.

  • If the source payment method type = ach-debit-fund:
    • The transfer status will update to reversed
    • The transfer amount will be credited to the source moov-wallet balance
  • If source payment method type = ach-debit-collect:
    • The transfer status will update to reversed
    • The transfer amount credited to the destination moov-wallet balance

Return codes

Moov automatically adjusts the status of a bank account for specific types of ACH returns. If you see the following bank account statuses, you will need to take one of the appropriate actions before you can continue processing with Moov:

  • errored: You will need to add a new bank account (or contact Moov support and select submit a support ticket for technical issues)
  • verificationFailed: You will need to reverify (typically, reinitiate micro-deposits)

Below you’ll find the details on return codes and the action you’ll need to take. You will always be able to re-attempt verification if you receive a verificationFailed status. You will not be able to re-attempt verification if you receive an error status.

Required actions differ between returns received on ACH transfers and ACH micro-deposits. Use the tabs to see both sets of return codes and their corresponding action.
Return code Description Status: action
R01             Insufficient funds: The account has insufficient funds to complete the transaction No action needed
R02 Account closed: Previously active account has been closed by customer, or RDFI errored: Add new account
R03 No account located: Account number structure is valid and passes editing process, but does not correspond to an individual, or is not an open account errored: Add new account
R04 Invalid account number: Account number structure not valid. Entry may fail check digit validation, or may contain an incorrect number of digits. errored: Add new account
R05 Improper debit: A CCD, CTX, or CBR debit entry was transmitted to a consumer account of the receiver, but was not authorized by the receiver verificationFailed: Reverify
R06 Originator requested return: The ODFI has requested the RDFI to return an erroneous entry, or a credit entry, originated without the authorization on of the originator errored: Add new account
R07 Authorization revoked by customer: Consumer, who previously authorized ACH payment, has revoked authorization from originator (must be returned no later than 60 days from settlement date, and customer must sign affidavit) errored: Add a new account
R08 Payment stopped: Receiver of a recurring debit transaction has stopped payment to a specific ACH debit. RDFI should verify the receiver’s intent when a request for stop payment is made to ensure this is not intended to be a revocation of authorization. verificationFailed: Reverify
R09 Uncollected funds: A sufficient ledger balance exists to satisfy the dollar value of the transaction, but the available balance is below the dollar value of the debit entry No action needed
R10 Originator unknown or unauthorized: The receiver does not know the originator’s identity and/or has not authorized the originator to debit. Alternatively, for ARC, BOC, and POP entries, the signature is not authentic or authorized. errored: Add new account
R11 Entry unauthorized: Customer has authorized a debit for a specific amount and/or on a certain day of the month, however, the originator has changed the original terms of the authorization. Customer can send the entry back because the terms have changed. verificationFailed: Reverify
R14 Payee unable to authorize: The representative payee authorized to accept entries on behalf of a beneficiary is either deceased, or unable to continue in that capacity errored: Add new account
R16 Bank account frozen: Funds in bank account are unavailable due to action by the RDFI, or legal order errored: Add new account
R17 Receiving bank rejected payment: (1) Fields cannot be processed by the RDFI; or (2) The entry contains an invalid DFI account number and is believed by the RDFI to have been initiated under questionable circumstances verificationFailed: Reverify
R20 Non-payment bank account: Entry destined for non-payment bank account defined by Regulation D errored: Add new account
R23 Receiver refused payment: Customer refuses transaction because amount is inaccurate, results in overpayment, account is in litigation, or originator is not known to receiver verificationFailed: Reverify
R29 Originator unauthorized: The RDFI has been notified by corporate receiver that debit entry of originator is not authorized errored: Add new account
R31 Permissible return entry: The ODFI agrees to accept a return after the 24-hour deadline of a corporate entry reported unauthorized No action needed
Return code Description Status: action
R01             Insufficient funds: The account has insufficient funds to complete the transaction No action needed
R02 Account closed: Previously active account has been closed by customer, or RDFI errored: Add new account
R03 No account located: Account number structure is valid and passes editing process, but does not correspond to an individual, or is not an open account errored: Add new account
R04 Invalid account number: Account number structure not valid. Entry may fail check digit validation, or may contain an incorrect number of digits. errored: Add new account
R05 Improper debit: A CCD, CTX, or CBR debit entry was transmitted to a consumer account of the receiver, but was not authorized by the receiver verificationFailed: Reverify
R06 Originator requested return: The ODFI has requested the RDFI to return an erroneous entry, or a credit entry, originated without the authorization on of the originator verificationFailed: Reverify
R07 Authorization revoked by customer: Consumer, who previously authorized ACH payment, has revoked authorization from originator (must be returned no later than 60 days from settlement date, and customer must sign affidavit) verificationFailed: Reverify
R08 Payment stopped: Receiver of a recurring debit transaction has stopped payment to a specific ACH debit. RDFI should verify the receiver’s intent when a request for stop payment is made to ensure this is not intended to be a revocation of authorization. verificationFailed: Reverify
R09 Uncollected funds: A sufficient ledger balance exists to satisfy the dollar value of the transaction, but the available balance is below the dollar value of the debit entry No action needed
R10 Originator unknown or unauthorized: The receiver does not know the originator’s identity and/or has not authorized the originator to debit. Alternatively, for ARC, BOC, and POP entries, the signature is not authentic or authorized. verificationFailed: Reverify
R11 Entry unauthorized: Customer has authorized a debit for a specific amount and/or on a certain day of the month, however, the originator has changed the original terms of the authorization. Customer can send the entry back because the terms have changed. verificationFailed: Reverify
R14 Payee unable to authorize: The representative payee authorized to accept entries on behalf of a beneficiary is either deceased, or unable to continue in that capacity verificationFailed: Reverify
R16 Bank account frozen: Funds in bank account are unavailable due to action by the RDFI, or legal order errored: Add new account
R17 Receiving bank rejected payment: (1) Fields cannot be processed by the RDFI; or (2) The entry contains an invalid DFI account number and is believed by the RDFI to have been initiated under questionable circumstances verificationFailed: Reverify
R20 Non-payment bank account: Entry destined for non-payment bank account defined by Regulation D verificationFailed: Reverify
R23 Receiver refused payment: Customer refuses transaction because amount is inaccurate, results in overpayment, account is in litigation, or originator is not known to receiver verificationFailed: Reverify
R29 Originator unauthorized: The RDFI has been notified by corporate receiver that debit entry of originator is not authorized verificationFailed: Reverify
R31 Permissible return entry: The ODFI agrees to accept a return after the 24-hour deadline of a corporate entry reported unauthorized No action needed

If you are unable to resolve your error, contact Moov support and select submit a support ticket for technical issues.

Summary Beta