R50

What Is ACH Return Code R50?

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 R50, also known as "State Law Affecting RCK Acceptance," is a standard code used in Automated Clearing House (ACH) transactions. This code is formally defined by Nacha as, “The RDFI is located in a state that has not adopted Revised Article 4 of the UCC (1990 official text) and has not revised its customer agreement to allow for electronic presentment or the RDFI is located within a state that requires all canceled checks to a specific type of account to be returned to the receiver within the periodic statement.”

In other words, R50 indicates that the RDFI for the transaction is in a state that either does not allow for digital payments or that the RDFI is located in a state where all canceled checks must be returned to a consumer within a certain number of days. It is important to note here that an incorrectly entered routing number can sometimes trigger this return code if the mis-entered routing number applies to an RDFI in one of the states that meets the criteria listed above. The RDFI must return the transaction within 2 banking days.

How To Address ACH Return Code R50

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 R50 is governed by individual state laws and specific circumstances, it is not a common return code to encounter. However, if you encounter R50, you should first check that the routing number was correctly entered for this transaction. If the routing number is correct, then the return was genuinely caused by the relevant state laws for the RDFI in this transaction, in which case you will need to contact your customer to obtain an alternate form of payment, if necessary.

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.