R77

What Is ACH Return Code R77?

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 R77, also known as “Non-Acceptance of R62," is a standard code used in Automated Clearing House (ACH) transactions. This code indicates that there is an issue with an R62 return.

R62 applies to only two types of return scenarios, officially defined by Nacha as:

1. “A debit erroneous entry and a subsequent credit reversing entry are both transmitted to the receiver’s account. The debit erroneous entry is returned but the credit reversing entry is posted and made available to the receiver.
2. A credit erroneous entry and a subsequent debit reversing entry are both transmitted to the receiver’s account. The credit erroneous entry is posted and made available to the receiver, but the debit reversing entry is returned.”

When you receive R77, there are two possible issues with the original R62 that could have caused the R77 return:

1. The RDFI has returned both the incorrect transaction and the related reversed ACH payment
2. The funds from the R62 can’t be received from the recipient for some reason

In other words, the RDFI is contesting the original R62 return for one of the two reasons listed above, which triggers R77. The contested return R77 must be transmitted by the RDFI within 2 banking days.

How To Address ACH Return Code R77

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 R77, the best course of action is to contact the RDFI to find out the issue that caused you to receive this code. Depending on the issue at hand, you may also need to reach out to your customer to work directly with them to resolve R77.

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.