ACH Return Code R44

ACH Return Code R44 indicates that the transaction was rejected because the Individual ID Number or Identification Number is invalid. This typically occurs when the information provided does not match the records at the receiving bank, often due to a typo or incorrect data entry.

What Is an ACH Return Code

An ACH return code is a standardized message used to explain why an ACH payment was rejected or could not be processed. 

These codes are defined by NACHA, the governing body of the ACH Network, and help financial institutions, including the Receiving Depository Financial Institution (RDFI) and the Originating Depository Financial Institution (ODFI), identify and resolve issues with electronic transactions. 

When an ACH payment fails—for example, due to insufficient funds, incorrect account details, or unauthorized transactions—the RDFI sends a return code back to the ODFI, providing a clear reason for the failure.

What Is ACH Return Code R44

ACH Return Code R44 refers to a situation where an ACH debit entry is returned because the Individual ID Number or Identification Number provided in the transaction is invalid. 

This typically happens in corporate-to-corporate transactions where the receiving bank, also known as the Receiving Depository Financial Institution (RDFI), cannot match the identification number with a valid account holder or authorized party. 

The return is sent back through the ACH Network to the Originating Depository Financial Institution (ODFI), alerting them that the entry could not be processed.

How to Fix ACH Return Code R44

To fix ACH Return Code R44, verify and correct the Individual ID Number or Identification Number associated with the transaction. This often involves reaching out to the customer or business partner to confirm the correct details, as the information provided likely does not match what the Receiving Depository Financial Institution (RDFI) has on file. 

Once the correct ID number is obtained, you can update the payment information and resubmit the ACH entry through your bank or payment processor.