ACH Return Code R45

ACH Return Code R45 indicates an Invalid Individual Name/Company Name. This code is returned when the name provided in an ACH payment does not match the records held by the receiving financial institution. 

It typically means that the name on the account or transaction was entered incorrectly, causing the payment to be rejected. Correcting the name details can resolve this issue and allow the transaction to proceed.

What Is an ACH Return Code

An ACH return code is a standardized message that explains why an ACH payment was rejected or could not be processed.

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

When an ACH payment fails, whether due to insufficient funds, incorrect account information, or unauthorized transactions, the RDFI sends a return code to the ODFI, providing a clear explanation of the failure.

What Is ACH Return Code R45

ACH Return Code R45 indicates an "Invalid Individual Name/Company Name." This code is triggered when the name provided in an ACH payment transaction does not match the records of the receiving bank. 

It can occur if the individual or company name on the transaction is entered incorrectly or does not align with the name associated with the receiving account. As a result, the payment is rejected and returned.

How to Fix ACH Return Code R45

To fix ACH Return Code R45, carefully review the individual or company name provided in the transaction and compare it with the records held by the receiving bank. Any discrepancies, such as spelling errors, missing initials, or incorrect business names, should be corrected. 

Ensure that the name exactly matches the one associated with the receiving account. Once the correct name is entered, the ACH payment can be resubmitted. If unsure, contacting the receiving bank for clarification on the name requirements may help ensure the transaction is processed without further issues.