ACH Return Codes Explained

When an ACH transaction is declined, the receiving bank of the ACH request sends LeaseRunner a response with the error that caused the return. Each error has an ACH R-code included. Here are the most common R-codes explained.

             *ODFI = Originating Depository Financial Institution, which is the financial institution that the ACH transaction starts or originates from (LeaseRunner's bank)

             *RDFI = Receiving Depository Financial Institution, which is the financial institution that receives the ACH transaction request (the tenant's bank or landlord's bank if funds are being forwarded to the landlord's bank account when the R-code is received). 

ACH Return Code R01 - Insufficient Funds: Not enough funds in the tenant's bank account to cover the transaction. The tenant should ensure there are sufficient funds in the bank account and authorize a new payment in the Tenant Payment Center. 

ACH Return Code R02 - Account Closed: A previously active account is closed by action of the bank's customer or financial institution. The receiver of this error code should replace the bank account information on file with LeaseRunner. 

ACH Return Code R03 - No Account/Unable to Locate Account: Account number does not correspond to the name on the account, or the account is not an open account. The receiver (the tenant or the landlord) should verify the bank account number with the financial institution and replace the bank account on file with LeaseRunner. 

ACH Return Code R04 - Invalid Account Number: Account number structure is incorrect, either missing digits or too many digits. The receiver (the tenant or the landlord) should verify the bank account number with the financial institution and replace the bank account on file with LeaseRunner. 

ACH Return Code R07 - Authorization Revoked by Customer: The Receiver (the tenant) who previously authorized an Entry has revoked authorization with the Originator (LeaseRunner) for this payment. If this was an overpayment, there is no action required as the payment will be returned to the tenant. 

Return Code R08 - Payment Stopped: The receiver of this transaction (the tenant) has filed a stop payment order on this payment with the receiver's financial institution. If this was an overpayment, there is no action required as the payment will be returned to the tenant. If rent is still owed, tenant should authorize a new payment. 

ACH Return Code R09 - Uncollected Funds: The account's available balance is below the dollar value of the debit entry; typically due to uncollected checks posted in the tenant's account. The tenant should authorize a new payment. 

ACH Return Code R10 - Customer Advises Unauthorized, Improper, Ineligible, or Part of an Incomplete Transaction: The RDFI (the tenant's bank) has been notified by the Receiver (the tenant) that the debit was unauthorized by filing a notarized Written Statement of Unauthorized Debit with their financial institution. 

ACH Return Code R12 - Branch Sold to Another DFI: A RDFI received a debit entry for an account that was sold to another financial institution. The receiver of this error should contact the financial institution to obtain new bank account number and routing number and update the information with Tenant Payment Center (tenant) or LeaseRunner (landlord). 

ACH Return Code R13 - Invalid ACH Routing Number: Routing number is incorrect. The receiver of this error should contact the financial institution to obtain new bank account number and routing number and update the information with Tenant Payment Center (tenant) or LeaseRunner (landlord). 

ACH Return Code R15 - Beneficiary or Account Holder Deceased: Either the beneficiary of the account is deceased or an account holder on the account is deceased. The receiver of this error code should replace the bank account information on file with LeaseRunner. 

ACH Return Code R16 - Account Frozen: The RDFI has restricted access to the account due to a specific action or legal action. The receiver of this error code should replace the bank account information on file with LeaseRunner or contact the financial institution to take a corrective action. 

ACH Return Code R20 - Non-Transaction Account: The tenant's account has restrictions or limitations on types of transactions. The receiver of this error code should replace the bank account information on file with LeaseRunner or contact the financial institution to take a corrective action.