R74

What Is ACH Return Code R74?

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 R74, also known as “Corrected Return," is a standard code used in Automated Clearing House (ACH) transactions.

This code indicates, according to Nacha, that, “The RDFI is correcting a previous return entry that was dishonored using Return Reason Code R69 (Field Errors).” Essentially this means that the return was dishonored because of issues with one or more fields in the original transaction.

How To Address ACH Return Code R74

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 R74, the best course of action is to wait for the RDFI to finish their correction of the return entry. However, if you continue to encounter R74 or significant time has passed with no update from the RDFI, you should reach out to them directly to see what can be done to resolve this return code.

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.