R81

What Is ACH Return Code R81?

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 R81, also known as “Non-Participant in IAT Program," is a standard code used in Automated Clearing House (ACH) transactions. This code indicates that the Gateway does not have an agreement with the ODFI or the Gateway’s customer for transmitting Outbound IAT Entries.

An IAT (International ACH Transaction) is a specific type of ACH (Automated Clearing House) transaction used for cross-border payments involving accounts held at financial institutions outside the United States. The IAT format allows for the electronic transfer of funds internationally, providing a standardized and efficient means for processing cross-border payments.

How To Address ACH Return Code R81

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 R81, the best course of action is to contact the RDFI to see if they can assist you with resolving this return code, in the event that it was caused in error. However, R81 generally indicates that you may not be able to process this IAT transaction via the financial institutions involved in the transaction, so you may need to consider alternate transaction types.

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.