ACH Return Code R71

ACH Return Code R71: Misrouted Dishonored Return refers to a situation where an ACH payment is sent to the wrong financial institution, causing it to be returned dishonored. This typically occurs when the routing number associated with the payment is incorrect, leading to the transaction being rejected. 

Understanding this code is important for identifying and resolving payment routing errors to ensure successful transactions.

What Is an ACH Return Code

Return codes in ACH payments are standardized indicators that provide reasons for a transaction's failure to process through the ACH network. 

These codes are essential for both the Originating Depository Financial Institution (ODFI), which initiates the payment, and the Receiving Depository Financial Institution (RDFI), which processes it. They allow both parties to quickly pinpoint the issue and take corrective actions.

Managed by NACHA, the governing body of the ACH network, these codes ensure consistency and transparency. Common reasons for returns include insufficient funds, invalid or closed accounts, incorrect banking details, or unauthorized transactions.

What Is ACH Return Code R71

ACH Return Code R71 indicates a misrouted dishonored return, meaning that a dishonored return entry was sent to the wrong financial institution. This usually happens when the routing number used to return the dishonored transaction does not match the original transaction's routing details. 

In such cases, the RDFI (Receiving Depository Financial Institution) receives a return that it cannot process because the entry was not properly routed. This code helps identify routing errors in the reversal process and ensures that the issue can be corrected by resubmitting the dishonored return to the correct institution.

How to Fix ACH Return Code R71

To fix ACH Return Code R71, the originator or financial institution must review the routing details used in the dishonored return to identify the error. The issue typically involves an incorrect routing number, so verify the original transaction data and ensure that the dishonored return is being sent to the correct Receiving Depository Financial Institution (RDFI). 

Once the correct routing information is confirmed, the return should be resubmitted through the proper channels.