ACH Return Code R29

Classified as "Corporate Customer Advises Not Authorized," the ACH return code R29 specifically indicates that the account holder has communicated to their bank that a particular ACH transaction is unauthorized. Typically associated with non-consumer accounts, the R29 code is most relevant for business-to-business transactions. 

When you receive an ACH return with this code, act promptly, as the Receiving Depository Financial Institution (RDFI) must process the return within two banking days.

What Is an ACH Return Code

ACH return codes act as an essential notification system for financial institutions, providing reasons for unsuccessful transactions. When a payment fails during the ACH transaction process, the Receiving Depository Financial Institution (RDFI) sends a specific ACH return code back to the Originating Depository Financial Institution (ODFI). This code details the nature of the payment failures, ensuring that both entities understand the underlying issues.

There are over 80 unique ACH return codes, each indicating different problems that may arise during a transaction. The National Automated Clearing House Association (NACHA) governs these codes, facilitating clearer communication regarding payment failures across the ACH Network.

What Is ACH Return Code R29

In ACH payments, ACH Return Code R29 indicates that a corporate account holder has informed their bank that an originator of a transaction lacks the authorization to debit their account. This code often appears in the context of business-to-business (B2B) transactions, where companies might need to revoke prior consent for creditors or service providers to access their funds.

The formal definition of this return code is “Corporate customer advises not authorized.” When you encounter this code, halt any recurring transactions associated with the unauthorized transaction immediately.

How to Fix ACH Return Code R29

When dealing with an ACH Return Code R29, first stop any recurring payments tied to the affected customer's account. This prevents further unauthorized transactions while you work on resolving unauthorized payments.

Reach out to the customer to understand their reasons for revoking authorization. They may be willing to offer an alternative payment method or resolve the issue directly, which can expedite the resolution process.

Also, document any standard authorization that existed prior to the return of the transaction. Although the ACH Network does not offer a formal dispute resolution service, you can negotiate directly with the customer to address the matter. If disagreements continue, seeking legal advice may be necessary to navigate claims of unauthorized transactions.