ACH Return Code R31

ACH Return Code R31 refers to a Permissible Return Entry and applies only to corporate payments, specifically CCD (Cash Concentration or Disbursement) and CTX (Corporate Trade Exchange) transactions. 

It indicates that the Receiving Depository Financial Institution (RDFI) is allowed, but not required, to return the entry under NACHA rules.

What Is an ACH Return Code

In ACH payments, an ACH return code helps identify and explain the specific issues that can occur during a transaction within the Automated Clearing House (ACH) network. These codes, which begin with the letter "R" followed by two digits, correspond to over 85 possible reasons for a return. Common reasons include insufficient funds, account closures, or errors in account information.

The ACH Network, overseen by NACHA, supports electronic fund transfers between the Receiving Depository Financial Institution (RDFI) and the Originating Depository Financial Institution (ODFI). Understanding these return codes will help you minimize interruptions and maintain smooth financial operations.

What Is ACH Return Code R31

ACH Return Code R31 refers to a Permissible Return Entry, which applies specifically to corporate ACH transactions in CCD (Cash Concentration or Disbursement) and CTX (Corporate Trade Exchange) formats. This return code signifies that the Receiving Depository Financial Institution (RDFI) has the option to return the transaction, but is not obligated to do so under the rules established by NACHA (National Automated Clearing House Association).

It is commonly used when the RDFI determines that the return of a transaction is acceptable, but not mandatory. This provides flexibility in handling corporate payments, allowing the RDFI to choose whether or not to return the entry based on specific circumstances surrounding the payment.

How to Fix ACH Return Code R31

To fix ACH Return Code R31, first ensure that the transaction is correctly formatted for corporate payments using CCD or CTX, as this return code is specific to these formats. Verify the details of the transaction and confirm that the Receiving Depository Financial Institution (RDFI) has the right to return the entry, but isn't obligated to do so. 

If there are no issues with the payment itself, consider contacting the RDFI to discuss why the return was permissible and explore any actions needed to resolve it, such as updating account information or addressing transaction discrepancies.