R38

What Is ACH Return Code R38?

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 R38, also known as "Stop Payment on Source Document," is a standard code used in Automated Clearing House (ACH) transactions. This code indicates that a stop payment has been issued against a source document (such as a paper check) in an ACH transaction.

R38 applies to ARC Entry transactions, which allow for a consumer check received through the mail or a dropbox location into a singular ACH Debit entry, facilitating payment for goods or services. If a stop payment is then issues against that consumer check, you will encounter R38. The RDFI must return the transaction with code R38 within 60 calendar days

How To Address ACH Return Code R38

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.

If you encounter R38, you will unfortunately need to wait for the associated banking institutions to resolve this issue between them. If you need immediate payment from your customer, you will need to reach out to them directly for an alternate form of payment.

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.