ACH Return Code R28

The ACH Return Code R28 pertains to a routing number check digit error. This code indicates an issue with the routing number used in your ACH transactions, often due to an incorrect or missing check digit. Accurate routing numbers are critical since the check digit, derived from the prior eight digits, serves as a verification tool. 

If an error in this calculation arises, the Receiving Depository Financial Institution (RDFI) will initiate a return of the payment using the R28 code.

What Is an ACH Return Code

ACH payments represent a convenient method for conducting electronic funds transfer (EFT) between banks in the United States. This system allows you to complete transactions quickly and efficiently. When a transaction fails, an ACH return code is generated, providing important information about why the payment could not be processed.

There are over 80 different ACH return codes managed by NACHA, each designated by an 'R' followed by two digits. This coding system allows both the Originating Depository Financial Institution (ODFI) and the Receiving Depository Financial Institution (RDFI) to pinpoint the cause of the failure. Common reasons for return codes include insufficient funds, invalid account numbers, or other discrepancies that prevent successful payment delivery.

What Is ACH Return Code R28

ACH Return Code R28 indicates a "Routing Number Check Digit Error." This code appears when the check digit for the supplied routing number in an ACH transaction is either incorrect or missing. Routing numbers comprise a total of nine digits, with the final digit serving as a check digit to confirm the validity of the entire number.

This error typically arises from minor typographical mistakes made during the entry of the transaction data. Such errors can lead to complications in processing, resulting in bank-to-bank transfer issues. When a routing number error is identified, the Receiving Depository Financial Institution (RDFI) must return the transaction with the ACH Return Code R28. As a result, verifying the accuracy of the routing number becomes essential for processing success.

How to Fix ACH Return Code R28

To effectively address ACH Return Code R28, review the transaction details. Confirm the accuracy of the routing number and its check digit, as these identify the correct financial institution. You can typically locate the routing number in the lower-left corner of a physical check. If the transaction was returned due to an error in the provided routing number, promptly correct the mistake and proceed with the transaction resubmission.

If your routing number appears accurate but you're still encountering the R28 code, it’s wise to get in touch with the customer to verify their banking information. Discrepancies can occur, and cross-checking with your client ensures that all data aligns correctly. Quick communication can help resolve these *payment processing errors* effectively, minimizing delays.