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ACH returns & exception handling

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).

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.

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). For R29 returns, approved accounts can reset the bank account by attesting reauthorization.
  • verificationFailed: You will need to reverify (typically, reinitiate verification)

You can always retry verification after verificationFailed, but not after errored.

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.
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)
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.