R12

What Is ACH Return Code R12?

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 R12, also known as "Branch Sold to Another DFI," is a standard code used in Automated Clearing House (ACH) transactions. It indicates that the transaction was returned because the branch where the account is held has been sold to another financial institution.

How To Address ACH Return Code R12

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.

When a financial institution undergoes a change like a merger, acquisitions, or the sale of an individual branch, customer bank account information may be transferred to a new or different financial information.

For example, imagine your business is attempting to initiate an ACH debit for $100 from your customer's account at their local banking branch. If the branch has been sold to another financial institution before or during the transaction processing time, the transaction will be returned with ACH Return Code R12. The customer’s bank must return the transaction with code R12 within 2 banking days.

If you encounter R12, the best way to address it is to contact your customer so that they can provide you with updated account information and routing number, then attempt the transaction again. It is important to note here that you must create a new transaction with the updated information, as opposed to trying the old transaction again with the new information.

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.