R37

What Is ACH Return Code R37?

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 R37, also known as "Source Document Presented for Payment," is a standard code used in Automated Clearing House (ACH) transactions. This code indicates that the ACH entry has been returned because the source document (aka the original paper check) has been presented for payment.

How To Address ACH Return Code R37

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 an ACH transaction is returned with ACH Return Code R37, it signifies that the entry is being rejected because the physical paper check associated with the transaction has been presented for payment through another channel. This could happen if the check is deposited at a bank or financial institution after the corresponding ACH entry has already been processed. The RDFI must return the transaction with code R37 within 60 calendar days.

If you encounter R37, you will be notified that the source document has been presented for payment, leading to the rejection of the ACH entry. You then may need to reconcile the payment status manually or explore alternative methods for processing the transaction.

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.