ACH Returns
Lead Bank partners and Receiving Depository Financial Institutions (RDFIs) may return ACH entries for any valid reason. A table of return codes available via API can be found below. Returns generally must be submitted so they are available to the Originating Depository Financial Institution (ODFI) by the opening of business on the second banking day following the original settlement date. In cases involving unauthorized transactions, RDFIs must provide a signed Written Statement of Unauthorized Debit (WSUD). These returns must be submitted so they are available by the opening of business on the 60th calendar day following the original settlement date. WSUDs must be obtained before initiating the return and retained for at least one year from the settlement date. Returns may be submitted on an ACH that is currently inpending status. However, the return will not be fully processed and sent to the Fed until the original ACH has successfully transitioned to posted.
Return Codes
| Code | Description | Account Type | Timing | WSUD Required |
|---|---|---|---|---|
| R01 | Insufficient Funds | Consumer or Non-consumer | 2 Banking Days | No |
| R02 | Account Closed | Consumer or Non-consumer | 2 Banking Days | No |
| R03 | No Account / Unable to Locate Account | Consumer or Non-consumer | 2 Banking Days | No |
| R07 | Authorization Revoked by Customer | Consumer | 60 Calendar Days | Yes |
| R08 | Payment Stopped | Consumer or Non-consumer | 2 Banking Days | No |
| R09 | Uncollected Funds | Consumer or Non-consumer | 2 Banking Days | No |
| R10 | Customer Advises Originator is Not Known/Not Authorized | Consumer; ARC, BOC, IAT, or POP may be Non-consumer | 60 Calendar Days | Yes |
| R11 | Authorization Revoked / Improperly Initiated Reversal | Consumer; ARC, BOC, IAT, or POP may be Non-consumer | 60 Calendar Days | Yes |
| R14 | Representative Payee Deceased/Unable to Continue | Consumer or Non-consumer | 2 Banking Days | No |
| R16 | Account Frozen / Entry Returned per OFAC | Consumer or Non-consumer | 2 Banking Days | No |
| R22 | Invalid Individual ID Number | Consumer or Non-consumer | 2 Banking Days | No |
| R29 | Corporate Customer Advises Not Authorized | Non-consumer | 2 Banking Days | No |
Return Submission Timing
Returns should be submitted promptly to ensure timely processing. ACH returns submitted outside the recommended windows may require manual intervention and could become untimely.Examples
Return of Debit Entry Received on Monday
Return of Debit Entry Received on Monday
| Event | Day | Deadline |
|---|---|---|
| Incoming Debit Entry | Monday | Settlement |
| Recommended Return Cutoff | Tuesday by 6:30 PM CT | 1st banking day |
| Final Return Cutoff | Tuesday by 10:00 PM CT | 2nd banking day |
| Untimely Return | Tuesday after 10:00 PM CT | Rejected by Lead |
Return of Debit Entry Received on Thursday (non-holiday week)
Return of Debit Entry Received on Thursday (non-holiday week)
| Event | Day | Deadline |
|---|---|---|
| Incoming Debit Entry | Thursday | Settlement |
| Recommended Return Cutoff | Friday by 6:30 PM CT | 1st banking day |
| Final Return Cutoff | Sunday by 10:00 PM CT | 2nd banking day |
| Untimely Return | Sunday after 10:00 PM CT | Rejected by Lead |
Return of Debit Entry Received on Friday (non-holiday week)
Return of Debit Entry Received on Friday (non-holiday week)
| Event | Day | Deadline |
|---|---|---|
| Incoming Debit Entry | Friday | Settlement |
| Recommended Return Cutoff | Monday by 6:30 PM CT | 1st banking day |
| Final Return Cutoff | Monday by 10:00 PM CT | 2nd banking day |
| Untimely Return | Monday after 10:00 PM CT | Rejected by Lead |
Late Returns
Nacha Operating Rules require ACH Originators to maintain Proof of Authorization for two years following the settlement date of the last debit to support potential Late Returns. If you suspect an unauthorized transaction after the standard return window has passed, contact Lead Bank promptly. You must provide documentation proving the authorization is invalid. Lead Bank will review the request and, if appropriate, request permission for a Late Return from the ODFI.Return vs. Reversal
| Example | ODFI | RDFI | Action |
|---|---|---|---|
| You accidentally duplicated push. Needs to get funds back for the second one. | Lead (ACH Credit, push) | External Bank | Reversal (you must perform within five business days) |
| You receive an ACH credit that you do not recognize (you suspect fraud and want to send back). | External Bank (ACH Credit, push) | Lead | Return |
| You regularly initiates ACH debits from a counterparty. One transaction was a mistake, so you need to send funds back for that transaction. | Lead (ACH Debit, pull) | External Bank | Reversal (you must perform within five business days) |
| You previously authorized ACH debits to allow funds to be pulled from your Lead account by a service provider. You suspects the latest pull was in error, as you think they cancelled the service for which it pays. | External Bank (ACH Debit, pull) | Lead | Return |