ACH returns and 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: Add new bank account (or contact Moov support and select submit a support ticket for technical issues)
verificationFailed: Re-verify bank account (for example, reinitiate micro-deposits)

Below you’ll find the details on return codes, and the action you’ll need to take.

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`: Reinitiate micro-deposits
`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`: Reinitiate micro-deposits
`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`: Reinitiate micro-deposits
`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`: Reinitiate micro-deposits
`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`: Reinitiate micro-deposits
`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

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