Written by Jackson Stone
Updated on April 14th, 2023
Table of Contents
Introduction
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. |