ACH Return Code R06 is a code used by banks to indicate that the transaction was returned for invalid account number. If a customer attempts to send funds from an account which does not exist, or if the account numbers are incorrect in any way, then the bank will return the transaction with this code. The code can also be used when there is a mismatch between the sender’s name and account number.

What is ACH?

ACH is an electronic payment system used to transfer funds between different bank accounts in the United States. ACH payments can be used for payroll, vendor payments, consumer payments, and other types of transactions.

What is an ACH Return?

An ACH return occurs when a payment made through the ACH network is returned by the receiving bank. A return can be initiated for various reasons, including insufficient funds in the account, a closed account, or an invalid account number.

What is ACH Return Code R06?

ACH Return Code R06 is a specific return code that is used when a payment is returned due to insufficient funds in the account or a closed account. This means that the payment could not be processed because the account did not have enough money to cover the transaction or the account was closed.

What happens when an ACH payment is returned with R06 code?

When an ACH payment is returned with an R06 code, the payment is not processed, and the funds are not transferred to the intended recipient. The payment will be returned to the originating bank, and the account holder who initiated the payment will be charged a fee by their bank for the returned payment.

How to prevent ACH Returns with R06 code?

To prevent ACH returns with R06 code, it’s essential to ensure that there are sufficient funds in the account before initiating any ACH transactions. It’s also important to verify that the account information provided is correct, including the account number and routing number.

How to handle ACH Returns with R06 code?

If an ACH payment is returned with an R06 code, the account holder should contact their bank to determine the reason for the return. The account holder may need to provide additional information or take corrective action, such as depositing more funds into their account, to resolve the issue.

Conclusion

ACH Return Code R06 indicates that an ACH payment was returned due to insufficient funds or a closed account. To avoid ACH returns, it’s important to ensure that there are sufficient funds in the account and that the account information provided is correct. If an ACH payment is returned with an R06 code, the account holder should contact their bank to determine the reason for the return and take corrective action as necessary.