R45

What Is ACH Return Code R45?

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 R45, also known as "Invalid Individual Name/Company Name," is a standard code used in Automated Clearing House (ACH) transactions. This code is applied when the individual name or company name associated with the transaction is deemed invalid or doesn't match the records at the receiving financial institution.

It is important to note that R45 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 R45, the error could be caused by something as small as a typo or other human error. Nacha officially defines R45 as when “the individual or company name provided in field 3 of the addenda record either doesn’t match an affiliated name in the federal agency’s records or fails to include at least one alphanumeric character.” There is no clearly defined timeline for a transaction being returned with R45.

How To Address ACH Return Code R45

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 R45 can only apply to governmental bank accounts, it is a fairly uncommon return code. If you encounter R45, you should reach out to the government agency that you are transacting with and ask them to confirm that the information you have for the transaction is correct. From there, if appropriate, you can resubmit the transaction with the updated and/or corrected 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.