What is an ACH Return?

Last updated: April 2, 2025

What is an ACH Return?

An ACH return refers to a transaction that is rejected or reversed after it has been processed through the ACH network. When an ACH return occurs, it means that the transaction has been reversed or cannot be completed for specific reasons.

Some common reasons for ACH returns include:

  1. Insufficient Funds (R01) – The account does not have enough funds to cover the transaction.

  2. No Account/Unable to Locate Account (R03) – The account number provided does not exist or is invalid.

  3. Account Closed (R02) – The account has been closed before the transaction could be completed.

Unauthorized Return  (R10) – The account holder has not authorized the transaction.