R44

What Is ACH Return Code R44?

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 R44, also known as "Invalid Individual ID Number or Identification Number," is a standard code used in Automated Clearing House (ACH) transactions. This code indicates that the ID number associated with the transaction is invalid or does not exist.

It is important to note that R44 is a return code that can only be associated with government bank accounts and generally only applies to Automated Enrollment Entry (ENR) entries, which are federal benefits that are paid out via direct deposit.

In the case of R44, the error could be caused by something as small as a typo, a change in the authorized users on the accounts, or other human error. Nacha formally defines this return code as, “The Individual ID Number/Identification Number provided in field 3 of the Addenda Record does not match a corresponding ID number in the Federal Government Agency’s records.” There is no clearly defined timeline for a transaction being returned with R44.

How To Address ACH Return Code R44

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.

As R44 can only apply to governmental bank accounts, it is a fairly uncommon return code. If you encounter R44, you will need to notify the associated financial institutions and/or government agency/account holder to get their assistance handling the return.

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.