ACH Return Code R40

ACH Return Code R40 indicates the return of an ENR (Automated Enrollment Entry) entry. This code is used when a financial institution cannot process an enrollment request for federal government benefit payments due to incorrect or invalid information. 

Understanding R40 helps ensure smoother direct deposit setups for federal benefits.

What Is an ACH Return Code

An ACH return code is a standardized message used within the Automated Clearing House (ACH) network to indicate why a transaction was not successfully processed. These codes are issued by the Receiving Depository Financial Institution (RDFI) when a problem occurs with an ACH payment, such as incorrect account information, insufficient funds, or unauthorized transactions. 

These codes are managed by NACHA and each return code provides specific details about the issue, helping both the originator and the financial institution understand the reason for the return and take appropriate corrective action.

What Is ACH Return Code R40

ACH Return Code R40 refers to the return of an ENR (Automated Enrollment Entry) entry. This code is used when a financial institution is unable to process an enrollment request for federal government benefit payments. 

The most common reasons include invalid account information, incorrect routing numbers, or other errors in the enrollment data submitted. When an R40 code is issued, it means the enrollment attempt has failed and corrective action is needed to resubmit accurate information.

How to Fix ACH Return Code R40

To fix ACH Return Code R40, review and correct the information provided in the ENR (Automated Enrollment Entry) submission. This includes verifying the recipient’s name, Social Security number, account number, and routing number to ensure they are accurate and match the records on file with both the financial institution and the federal agency involved. Once the errors are identified and corrected, the ENR entry can be resubmitted for processing.