Guide to ACH return codes

There are a variety of different ACH return codes that can be used to indicate the reason for a payment being returned. Knowing what each code means will help you better understand why a payment was not accepted, and what you need to do to fix the issue. Here is a list of the most common ACH return codes, along with what they mean and how to resolve the issue.
Code Description Resolution R01 Payment was not accepted by receiving bank Issuing bank did not receive payment R02 Payment was stopped by sender Issuing bank did not receive payment; this code should only be used if it can be proven that the sender attempted to make a payment, but was unable to do so R03 Payment was returned due to incorrect account number or routing number Incorrect account information was entered R04 Payment was returned due to invalid date Invalid date was entered on the payment R05 Payment was returned due to insufficient funds Insufficient funds were available to cover the payment R06 Payment was returned due to an invalid account type The account type entered is not recognized by the processing bank R07 Payment was returned due to an invalid account number or routing number The bank account number entered does not match the ABA routing number R08 Payment was stopped because it exceeded dollar limits This code should only be used when the recipient has reached their maximum allowed dollar amount for this type of payment, and this particular payment would have put them over that limit R09 The payment is being held for review This code is used when the payment was flagged for potential fraud, and the issuing bank needs to review it before releasing the funds.
If your payment is returned with one of these codes, you will need to take action in order to resolve the issue. Depending on the issue, there are a couple different ways to fix the payment.
One of the most common issues is when an incorrect account number or routing number was entered during setup. In this case, you will need to update your payment information by going back into Intuit PaymentNetwork and changing it from there. Alternatively, you can also download a file of the payment so you can view it in your QuickBooks file, and change the information there.
If your account is on hold for review, you will need to contact the issuing bank directly in order to find out what is preventing them from releasing the funds. This issue can be caused by one of many different things, which means that contacting the bank is the best way to get more information and resolve the issue.
If there are insufficient funds available to cover the payment, you will need to make sure that there are enough funds in the account to cover the payment before trying to resubmit it. You can do this by going into Intuit PaymentNetwork and updating your payment information there.
The best way to prevent ACH return codes from affecting your payments is by making sure that all of the information in your payment setup is correct. One small typo in an account number or routing number will result in a failed payment, so it's always worth double checking this information before submitting each payment. You can also download files of your payments so you can look them over before submitting them to make sure all of the payment information is correct.
One additional tip to help reduce your chances of receiving an ACH return code is by limiting the number of times you submit a payment in Intuit PaymentNetwork. By submitting one payment at a time, there are fewer chances for human error to lead to a failed payment.