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NACHA Returns

Written by Jackson Stone

Updated on April 14th, 2023

Table of Contents


E-check data is formatted in a specific way that was set by the National Automated Clearing House Association (NACHA). NACHA's standards contain specific codes for returned payments, called "R-Codes" for short. To help make your automatic payment process as easy as possible, LoanPro lets you choose an action that the system should take depending on the R-Code.

Use Case: Compliance

Use Case: NACHA Returns/Small-Dollar Rule

The Problem:

A lender wants to ensure they collect the money they are owed by borrowers. In doing this, occasionally payments through the payment profile (card, bank account) the borrower provided are declined. The lender may unsuccessfully attempt to pull payments multiple times using the payment profile. Unfortunately, the CFPB's Small-Dollar Rule requires that after two consecutive failed payment attempts with a payment profile, the lender is required to get new authorization to use the payment profile from the borrower, before future payments can be attempted. If the lender accidentally attempts a payment after two failed attempts, they've violated the law and could be fined by the CFPB.

LoanPro's Solution:

LoanPro offers the NACHA Returns and Multiple Returns tools. Both help lenders obey the Small-Dollar Rule by giving the option to deactivate payment profiles after failed payment attempts. NACHA returns can cut off the payment profile after a single failed attempt, or Multiple Returns can be set to fail after a custom number of attempts, so lenders safely use the payment profile without needing a reauthorization or risking fines.


Return Codes

The table below lists all possible return codes.

Code Description
R01 Insufficient funds
R02 Bank account closed
R03 No bank account/unable to locate account
R04 Invalid bank account number
R05 Improper Debit to Consumer Account
R06 Returned per Originating Depository Financial Institution (ODFI) request
R07 Authorization revoked by customer
R08 Payment stopped
R09 Uncollected funds
R10 Customer advises not authorized
R11 Check truncation entry return
R12 Branch sold to another RDFI
R13 RDFI not qualified to participate
R14 Representative payee deceased or unable to continue in that capacity
R15 Beneficiary or bank account holder
R16 Bank account frozen
R17 File record edit criteria
R18 Improper effective entry date
R19 Amount field error
R20 Non-payment bank account
R21 Invalid company ID number
R22 Invalid individual ID number
R23 Credit entry refused by receiver
R24 Duplicate entry
R25 Addenda error
R26 Mandatory field error
R27 Trace number error
R28 Transit routing number check digit error
R29 Corporate customer advises not authorized
R30 RDFI not participant in check truncation program
R31 Permissible return entry (CCD and CTX only)
R32 RDFI non-settlement
R33 Return of XCK entry
R34 Limited participation RDFI
R35 Return of improper debit entry None
R36 Return of Improper Credit Entry (RCK) NACHA
R37 Source Document Presented for Payment NACHA
R38 Stop payment source document
R39 Improper Source Document / Source Document Presented for Payment
R40 Return of ENR Entry by Federal Government Agency (ENR only) NACHA
R41 Invalid Transaction Code (ENR only) NACHA
R42 Routing Number/Check Digit Error (ENR only) NACHA
R43 Invalid DFI Account Number (ENR only) NACHA
R44 Invalid Individual ID Number/Identification Number (ENR only) NACHA
R45 Invalid Individual Name/Company Name (ENR only)NACHA
R46 Invalid Representative Payee Indicator (ENR only) NACHA
R47 Duplicate Enrollment (ENR only) NACHA
R50 State Law Affecting RCK Acceptance NACHA
R51 The Amount of the RCK Entry was not Accurately Obtained from the Item NACHA
R52 Stop Payment on Item (adjustment entries) NACHA
R53 Item and ACH Entry Presented for Payment NACHA
R61 Misrouted Return NACHA
R62 Incorrect Trace Number NACHA
R63 Incorrect Dollar Amount NACHA
R64 Incorrect Individual Identification NACHA
R65 Incorrect Transaction Code NACHA
R66 Incorrect Company Identification NACHA
R67 Duplicate Return NACHA
R68 Untimely Return NACHA
R69 Multiple Errors NACHA
R70 Permissible Return Entry Not Accepted NACHA
R71 Misrouted Dishonored Return NACHA
R72 Untimely Dishonored Return NACHA
R73 Timely Original Return NACHA
R74 Corrected Return NACHA
R75 Return Not a Duplicate
R76 Non-Accepted of R62 Dishonored Return
R80 Cross-Border Payment Coding Error NACHA
R81 Non-Participant in Cross-Border Program NACHA
R82 Invalid Foreign Receiving DFI Identification NACHA
R83 Foreign Receiving DFI Unable to Settle NACHA
R84 Entry Not Processed by OGO NACHA
R85 Incorrectly Coded Outbound International Payment
R100 No R-Code Available. This is not an actual return code, but can be used when a return code is not available.


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