ACH Return Code R35

ACH Return Code R35 refers to an "Improper Debit Entry." This code occurs when a debit entry is attempted on a consumer account that is not authorized to accept debit transactions. It typically happens when the account is a type that doesn't permit the specific transaction—such as a business account or an account with restrictions on certain types of debits.

‍ACH (Automated Clearing House) codes are part of the standard process used by financial institutions to communicate issues that arise during the processing of ACH transactions.

What Is an ACH Return Code

In ACH payments, an ACH return code is a standard identifier used by financial institutions to communicate issues or problems encountered during the processing of an ACH (Automated Clearing House) transaction. When an ACH payment or transfer fails, a return code is issued to explain why the transaction could not be completed.

These codes help the Originating Depository Financial Institution (ODFI) and the Receiving Depository Financial Institution (RDFI) talk clearly during electronic transfers. Each return code is designated by an "R" followed by a two-digit number, and each one corresponds to a unique reason for the return. These codes are managed by NACHA.

What Is ACH Return Code R35

ACH Return Code R35 stands for "Improper Debit Entry." This code is issued when a debit entry is attempted on a consumer account that is not authorized to accept such transactions. Essentially, the account type or the account's status does not permit the specific debit action, leading to the failure of the transaction.

This return code is often encountered when there is a mismatch between the type of account being debited and the type of transaction attempted. For example, attempting to debit a business account or an account with restrictions on certain debits can trigger this code.

How to Fix ACH Return Code R35

To fix ACH Return Code R35, you need to address the issue with the account type or authorization. First, ensure that the account being debited is a consumer account, as transactions on business or restricted accounts are not permitted. If the account has limitations, such as restrictions on certain types of debits, verify the account details with the account holder to ensure it can accept the transaction. 

In some cases, you may need to obtain updated authorization from the account holder or ensure that the account is properly configured for the specific debit type. Also, double-check that all transaction details, including the account number and routing number, are correct. 

If the issue continues, reaching out to the receiving bank for clarification can provide further insights into why the transaction was rejected and help resolve the problem.