# ACH returns & exception handling > How Moov handles ACH returns before and after the clearing period, what each return code means, and which bank account status and action follows. > AI agents: search and read all Moov docs with the docs MCP server at https://docs.moov.io/mcp (no API key). Setup: https://docs.moov.io/guides/developer-tools/mcp-ai/docs-mcp/index.md An ACH return reverses a debit or credit after it was sent, for reasons such as insufficient funds or a closed account. Moov processes returns automatically and reflects the result in the transfer status and the affected Moov wallet. Returns usually arrive within two banking days, but unauthorized-debit returns can come up to 60 days after settlement. Watch for them with the `transfer.updated` webhook and the `achDetails.return` object on the transfer (see [ACH details](/guides/money-movement/ach/ach-details/index.md#read-ach-details-on-a-transfer)). ## How a return changes the transfer | What was returned | When | Transfer `status` | Wallet effect with `ach-debit-fund` | Wallet effect with `ach-debit-collect` | |-------------------|--------------------------------------------------------------|-------------------|--------------------------------------------|-------------------------------------------------| | The debit | During clearing (source `achDetails.status` is `originated`) | `failed` | None | None | | The debit | After clearing (source `achDetails.status` is `completed`) | `reversed` | Amount deducted from the **source** wallet | Amount deducted from the **destination** wallet | | The credit | After the debit completed (both legs `completed`) | `reversed` | Amount credited to the **source** wallet | Amount credited to the **destination** wallet | If a debit is reversed after funds were already moved out, the wallet can go negative. See [avoid a negative balance](/guides/wallets/balance/index.md#avoid-a-negative-balance). ## Return codes and required actions Some returns change the bank account's status, and you must act before you can use it again: - `errored`: You will need to add a new bank account (or [contact Moov](https://support.moov.io/)). For `R29` returns, approved accounts can [reset the bank account](/guides/money-movement/ach/r29/index.md) by attesting reauthorization. - `verificationFailed`: You will need to reverify (typically, reinitiate verification) You can always retry verification after `verificationFailed`, but not after `errored`. > **Note:** Required actions differ between returns received on ACH transfers and ACH verification. Use the tabs to see both sets of return codes and their corresponding action. **ACH transfers** | 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 a new account, do not attempt to re-submit with the same 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 (approved accounts can [self-serve R29](/guides/money-movement/ach/r29/index.md)) | | `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 | **ACH verification** | 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 a new account, do not attempt to re-submit with the same 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 (approved accounts can [self-serve R29](/guides/money-movement/ach/r29/index.md)) | | `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](https://support.moov.io/).