Anyone using the Automated Clearing House (ACH) may encounter an error code, also referred to as an ACH return code. In this knowledge base, we will cover potential errors that someone using ACH may encounter. We’ll cover all these error codes. Explain what each one means, its impact on you, your funding source, and how you can resolve the error.
Although using ACH for commercial real estate rent payments and collections offers convenience, significant time savings, automation, security, and reliability, sometimes errors can occur. Some factors are beyond our control, while others may come from unintentional actions we take. Understanding errors can help mitigate these issues.
If you need assistance setting up your ACH service in your tenant portal, check out our other knowledge base article. Tenant Payment Integration (ACH) in STRATAFOLIO
The acronyms and terms listed below will appear in the comprehensive table containing this information:
| Acronym or Term | Description |
|---|---|
| ODFI | Originating Depository Financial Institution |
| RDFI | Receiving Depository Financial Institution |
| OFAC | Office of Foreign Assets Control |
| RCK | Re-presented Check Entry |
| Blocklisted | If a funding source is added to the blocklist as a result of an ACH return code, you will need to contact your Customer Excellence Manager to get it removed. |
Potential ACH Errors
The table below outlines potential errors that someone using ACH may encounter. It includes the ACH error codes, their impact on you and your funding source, and the steps to resolve the error. For more information, you can check out Dwalla’s FAQs. Recognizing ACH error codes early can save time and prevent further complications.
| Error Code | Description | Explanation | Return Time Frame | User Impact | Funding Source Impact | Action to Resolve The Error |
|---|---|---|---|---|---|---|
| R01 | Insufficient Funds | The account does not have enough funds to cover the debit. | 2 banking days | None | None | Confirm that there are sufficient funds in the account before retrying the transaction. |
| R02 | Bank Account Closed | The account has been closed. | 2 banking days | None | Unverified and Removed | Check if the account is closed. If it is, update with a valid funding source or provide a new account. |
| R03 | No Account/Unable to Locate Account | The account number does not correspond to a valid account. | 2 banking days | None | Unverified and Removed | Check the account details. If they are wrong, update the funding source with the correct information. Make sure the account number and routing number are accurate. |
| R04 | Invalid Bank Account Number Structure | The account number structure is not valid. | 2 banking days | None | Unverified and Removed | Check the account number format and make necessary updates to the funding source. Ensure the format is correct and review for any errors. |
| R05 | Unauthorized Debit to Consumer Account Using Corporate SEC Code | A corporate debit entry was made to a consumer account without authorization. | 60 calendar days | Suspended (If already deactivated, status remains unchanged) | Unverified, Removed, and Blocklisted | Use the correct SEC code: Only use CCD/CTX for business accounts, not consumer ones. Or, Get proper authorization: Always collect and retain valid authorization before debiting any account. Lastly, Be ready to show proof: If an unauthorized return occurs, Dwolla’s Risk team may request authorization documents to respond to their partner bank. Have those ready in case they reach out. |
| R06 | Returned per ODFI’s Request | The Originating Depository Financial Institution (ODFI) requested the return. | Not Defined | Suspended (If already deactivated, status remains unchanged) | Unverified, Removed, and Blocklisted | Coordinate with the ODFI to understand the return reason and take action. |
| R07 | Authorization Revoked by Customer | The customer revoked authorization for the debit. | 60 calendar days | Deactivated | Unverified and Removed | Obtain a written statement of revoked authorization, and reactivate the account only after resolving the issue. |
| R08 | Payment Stopped | The receiver requested a stop payment on the debit. | 2 banking days | None | Unverified and Removed | Talk to the customer to understand why they stopped the payment. Resolve their concern before retrying the transaction. Confirm the stop payment with the receiver and check if it’s okay to proceed with the payment. |
| R09 | Uncollected Funds | Sufficient balance exists, but uncollected items bring the balance below the debit amount. | 2 banking days | None | None | Ensure all deposits have cleared before retrying the transaction. If there are pending items, wait for them to clear or deposit additional funds. |
| R10 | Customer Advises Originator is Not Known to Receiver and/or Originator is Not Authorized by Receiver to Debit Receiver’s Account | The customer claims not to know the originator or did not authorize the debit. | 60 calendar days | Suspended | Unverified, Removed, and Blocklisted | Get a written statement of the unauthorized debit and investigate the issue before retrying the transaction. Provide proof of authorization to the customer. |
| R11 | Customer Advises Entry Not in Accordance with the Terms of the Authorization | The debit entry was inaccurate or improperly initiated. | 60 calendar days | Deactivated | Unverified and Removed | Request a written statement for the unauthorized debit. Resolve the issue and obtain a new authorization before retrying the transaction. |
| R12 | Branch Sold to Another DFI | The account was sold to another financial institution. | 2 banking days | None | Removed | Update the funding source with the new bank account details. |
| R13 | Invalid ACH Routing Number | The routing number is not valid. | Next File Delivery Time Following Processing | None | Unverified, Removed, and Blocklisted | Correct the routing number and update the funding source. Ensure the new routing number is valid. |
| R14 | Representative Payee Deceased or Unable to Continue in That Capacity | The representative payee is deceased or unable to continue. | 2 banking days | Suspended (If already deactivated, status remains unchanged) | Removed | Verify the status of the representative payee. Update the account information accordingly. |
| R15 | Beneficiary or Account Holder Deceased | The beneficiary or account holder is deceased. | 2 banking days | Suspended (If already deactivated, status remains unchanged) | Unverified, Removed, and Blocklisted | Confirm the account holder’s status. If deceased, close the account and update the funding source. |
| R16 | Account Frozen/Entry Returned per OFAC Instruction | The account is frozen or the entry was returned per Office of Foreign Assets Control (OFAC) instruction. | 2 banking days | Suspended (If already deactivated, status remains unchanged) | Unverified, Removed, and Blocklisted | Contact the RDFI to understand the reason for the freeze. Resolve any compliance issues before retrying the transaction. |
| R17 | File Record Edit Criteria/Entry with Invalid Account Number Initiated Under Questionable Circumstances | The entry contains an invalid account number or was initiated under questionable circumstances. | 2 banking days | Suspended (If already deactivated, status remains unchanged) | Unverified, Removed, and Blocklisted | Review the transaction for errors or suspicious activity. Correct any issues before retrying the transaction. |
| R20 | Non-Transaction Account | The account is a non-transaction account. | 2 banking days | None | Removed, and Blocklisted | Confirm the account type. If it’s a non-transaction account, update the funding source with a valid transaction account. |
| R22 | Invalid Individual ID Number | The individual ID number is invalid. | 2 banking days | None | Unverified | Verify the individual’s ID number. Correct any discrepancies and update the funding source. |
| R23 | Credit Entry Refused by Receiver | The receiver refused the credit entry. | 2 banking days | None | Unverified and Removed | Contact the receiver to understand the reason for refusal. Address the concern before retrying the transaction. |
| R29 | Corporate Customer Advises Not Authorized | A corporate customer advises the debit was not authorized. | 2 banking days | Suspended (If already deactivated, status remains unchanged) | Unverified, Removed, and Blocklisted | Obtain a written statement of unauthorized debit. Investigate and resolve the issue before retrying the transaction. |
| R31 | Permissible Return (CCD and CTX only) | The return is permissible under CCD and CTX rules. | Not Defined | Suspended (If already deactivated, status remains unchanged) | Unverified, Removed, and Blocklisted | Coordinate with the ODFI to understand the reason for the return and take appropriate action. |
| R37 | Source Document Presented for Payment | The source document was presented for payment. | 60 calendar days | None | Removed | Ensure the source document is valid. Address any issues before retrying the transaction. |
| R38 | Stop Payment on Source Document | A stop payment order was placed on the source document. | 60 calendar days | Suspended (If already deactivated, status remains unchanged) | Unverified, Removed, and Blocklisted | Contact the receiver to understand the reason for the stop payment. Address the concern before retrying the transaction. |
| R51 | Item Related to RCK Entry is Ineligible or RCK Entry is Improper | The item related to a Re-presented Check Entry (RCK) is ineligible or improper. | 60 calendar days | Suspended (If already deactivated, status remains unchanged) | Unverified, Removed, and Blocklisted | Obtain a written statement of improper entry. Investigate and resolve the issue before retrying the transaction. |
Best Practices
To ensure a seamless experience, we recommend the following best practices.
- Enable two-factor authentication to add an extra layer of security to your account.
- Do not share your login information with anyone.
- Monitor your transactions regularly and ensure that your correct payment amounts are always entered.
- Do not mark the stratafolio.com domain as spam. This could prevent you from receiving important alerts we send out.
- Landlord: Ensure invoices are always created prior to the ACH transaction due date.
- Tenant: Set up your autopay and leave the amount blank to ensure you are paying the full invoice amounts. If you add an amount, ensure you update it when your lease escalations take effect to avoid underpaying your rent.
We hope this information provides you with the necessary details to ensure a pleasant ACH experience.
