R40

What Is ACH Return Code R40?

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 R40, also known as "Return of ENR Entry," is a standard code used in Automated Clearing House (ACH) transactions. This code is unique in that it is issued at the sole discretion of a given federal government agency and is formally known as “Return of ENR Entry by a Federal Government Agency.” As a result of the nature of this return code, there is no clearly defined timeline for a transaction being returned with R40.

How To Address ACH Return Code R40

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.

It is highly unlikely that you will ever encounter R40, unless your businesses regularly works closely with the federal government. However, if you do encounter R40, you will need to wait for further information and instructions from said federal government agency. R40 cannot be resolved by a merchant or even a financial institution directly involved in 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.