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Understanding Rejected Payments
In This Article
ACH Return Codes Explained
When a payment fails in DepositLink, a code appears in the transaction details to help identify the cause. These codes come directly from the bank via the ACH network and can help you resolve the issue quickly.
Common Codes & Meanings:
- R01 - Insufficient Funds: The account didn’t have enough money to complete the transaction.
- R02 - Account Closed: The account is no longer active.
- R03 - No Account/Unable to Locate: The account number or routing number was invalid.
- R04 - Invalid Account Number Structure.
Uncommon Codes & Meanings:
- R07 - Authorization Revoked by Customer: The member who previously authorized an entry has revoked authorization with the originator.
- R08 - Payment Stopped: The member previously requested a stop payment of a single or recurring entry.
- R10 - Originator Not Known and/or Not Authorized to Debit Receiver’s Account.
- R16 - Account Frozen: Access to the account is restricted due to specific action taken by the RDFI or by legal action.
- R20 - Non-Transaction Account: The account type does not support ACH transfers.
- R29 - Corporate Customer Refused Payment: The receiving account rejected the ACH debit.
Please note: Return Codes are issued by banks and may vary.
Additional Rejected Payment Statuses
On rare occasions, a payment will return the following message outside of the standard banking return codes issued:
- Invalid Destination
- Invalid Funding Source
- Receiver Restricted
- Sender Restricted
These scenarios are handled on a case-by-case basis. For more information, please contact DepositLink Support.
What Happens if a Deposit Is Rejected?
If the receiving bank rejects a deposit, the funds will not clear into the recipient’s account. This can happen due to invalid account information, account restrictions, or bank policies.
Process:
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DepositLink receives a return code from the bank.
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The transaction status will reflect as Payment Failed in your Transaction History.
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An automated email is sent to the Agent listed on the deal as well as the Payer.
Steps taken by DepositLink:
DepositLink Support Ops communicates with the Admin if funds need to be reconciled and provides additional information for the Agent listed on the deal.Any advanced funds are then reconciled from the destination account.
Next Steps for the Agent:
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Review the return code in the transaction details and work directly with the payer.
Next Steps for the Payer:
- Contact your bank for more information regarding the return code.
- Ensure there are no outgoing blocks on the account.
- Correct any account information errors before retrying.
- For persistent issues, contact your bank or switch to another account.
Please contact DepositLink Support for the next steps if the bank account becomes suspended, as we will need to work with our payment processor to lift the suspension.