Learn how manage merchant ACH debit failures and returns and how impact merchant funding and transfers
When Payabli attempts to debit or credit a merchant, and the ACH transaction fails (either when sending money to merchants or pulling funds), the system returns a specific code that identifies the reason for the failure. These returns can trigger holds and prevent batches from being processed.
This guide explains how a merchant ACH debit failure or return can impact merchant funds, potential account suspensions, and resolution procedures.
Notification process
To help partners manage transfer exceptions and ACH returns, Payabli has several automated notifications that you must enable. These notifications alert you when a transfer fails or a return is received.
We recommend that partners enable the following notifications:
- Transfer Error
- Transfer Return
You can read about other available transfer notifications in Notifications and Webhooks Overview: Pay In Events. See Manage Notifications (UI) for help setting up these notifications.
These notifications help you catch transfer exceptions and ACH returns early, so you can resolve them quickly and prevent account suspensions and funding delays.
Common return codes
This section explains the most common ACH return codes that affect merchant debits, and their resolutions.
| Return Code | Explanation | Settlement Impact | Resolution Requirement |
|---|---|---|---|
| R01: Insufficient Funds | There weren’t enough funds in the account at the time of the debit attempt. | May lead to account suspension | Ensure sufficient funds and confirm when Payabli can reattempt the debit |
| R02: Account Closed | The bank has closed the account on file. | Account suspension until resolved | Provide updated banking details immediately |
| R03: Cannot Locate Account | The provided account details are incorrect or outdated. | Account suspension until resolved | Verify and update banking details |
| R05: Unauthorized Corporate Debit | The bank has rejected the debit as unauthorized. | Account suspension until resolved | Provide written confirmation authorizing Payabli to debit the account |
| R07: Authorization Revoked | The customer has revoked authorization for debits. | Account suspension until resolved | Provide written confirmation authorizing Payabli to debit the account |
| R08: Payment Stopped | A manual stop payment was placed on the ACH debit. | May affect transaction processing | If unintentional, remove the stop payment and confirm when Payabli can reattempt |
| R24: Duplicate Entry | The transaction was mistakenly processed more than once. | No significant impact | No action required; Payabli will void the duplicate entry |
| R29: Debit Block | The bank has blocked Payabli from debiting the account. | Account suspension until resolved | Contact bank to authorize Payabli as an approved ACH processor |
| R38: Source Document Stop Paid | Specific item stop payment. | May affect transaction processing | If unintentional, remove the stop payment and confirm when Payabli can reattempt |
| R52: Stop Payment | Stop payment order active. | May affect transaction processing | If unintentional, remove the stop payment and confirm when Payabli can reattempt |
| R61: Misrouted Return | The return may have been incorrectly processed. | Possible processing delay | Payabli will work to resolve; confirm any updated banking information |
| R67: Duplicate Return | Return entry processed more than once. | No significant impact | No action required; Payabli will handle automatically |
If an ACH return indicates unauthorized debits, account closure, or insufficient funds, Payabli may suspend deposits until the issue is cleared.
During suspension, the merchant’s deposits may be held until the issue is resolved.
Preventing ACH returns on debits
To prevent ACH returns for attempted debits that could impact transfers, merchants should take the following steps:
Make sure banking information is up to date
Check your account details and make sure that your banking information is correct. Use the Payabli UI or contact Support to update your details.
Make sure sufficient funds are available
Make sure that the account has sufficient funds to help float returned transactions and other debits without impacting your transfers.
Authorize Payabli as an approved ACH processor with your bank
Some banks require pre-authorization for ACH transactions. To ensure smooth processing and prevent ACH returns due to authorization issues, we recommend that merchants take the following steps:
- Authorize ACH transactions with your bank in advance.
- Provide the bank with the ACH ID and descriptor: 1841393599 / WFMSPROPAY for allowlisting.
Pre-authorization is not always required, it depends on the bank.
Manage your account status
If the merchant no longer uses Payabli, contact Support to make sure their account is properly closed to prevent unexpected returns.
Recommended messages for your clients
Partners can use these email templates to alert their merchants about ACH returns and the necessary steps to resolve them.
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