R10

What Is ACH Return Code R10?

ACH return codes are used to identify the reason an ACH payment has been returned by the recipient's bank. They make it easier for originating and receiving financial institutions to spot and communicate payment failures.

ACH Return Code R10, also known as “Originator not known and/or not authorized to Debit Receiver’s Account,” is a standard code used in Automated Clearing House (ACH) transactions. R10 indicates that the receiver of a debit entry claims the transaction was unauthorized. This return code can occur for various reasons, including fraud, error, or disputes with the originator of the transaction. The receiver may claim that they did not provide consent for the transaction, or they may dispute the legitimacy of the charge with their bank.

How To Address ACH Return Code R10

Nacha prescribes separate rules for handling each return code since each one represents a unique scenario. ODFIs (Originating Depository Financial Institutions) and RDFIs (Receiving Depository Financial Institutions) are responsible for handling ACH return codes according to these rules.

For example, if your business is attempting to initiate an ACH debit for $100, but your customer does not believe that you should be authorized to do so and has alerted their bank, the bank would return the transaction with code R10. The customer’s bank must return the transaction with code R10 within 60 calendar days.

If you encounter R10, the best way to address it is to immediately stop any recurring transactions for this customer’s account and then get in touch with your customer to understand why the transaction was not authorized.

What Is An ACH Return Code?

ACH return codes identify the reason an ACH payment was returned by the recipient's bank. They make it easier for originating and receiving financial institutions to spot and communicate payment failures. Each code begins with 'R' followed by a two digit number. ACH return codes are standardized and maintained by NACHA, the governing body for the ACH network.