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If you process ACH payments for your business, you may eventually come across ACH return code R02. ACH payments allow the movement of money from one financial institution to another. Whether you are in charge of payroll for your company, accept payments from customers via direct deposit, or pay bills automatically, you are probably already familiar with ACH payments. However, sometimes those payments do not go through. When an ACH payment declines, you will receive one of 85 ACH return codes. ACH return codes are common to come across as a merchant. Because of this, it’s important to understand not only what they are, but what each error code means. What do you do if you were to come across a return code such as R02? Read on to learn more about what an ACH return code R02 is and how to resolve this issue.
What does ACH Return Code R02 Mean?
If you come across an R02 ACH return code on your screen, this means the account you’re trying to reach has been closed. Return code R02 means that while the client or customer had the account you’re trying to reach at one time, that account has since closed. This means you can no longer use it to collect payments.
Just because a customer closed the account they originally had doesn’t always mean they’re trying to avoid making a payment. It’s common for a customer to change accounts at least once in their lives, and simply forget to update every merchant with the new details.
Many ACH payments occur on a scheduled day per month, and it is very possible that in the process of closing one account and opening another, the ACH payment was due during the precise day when the original account was closed.
Formal Definition
The R02 ACH return code signifies “Account Closed.” As mentioned before, this return code signals that the customer has closed their account. In order to get the payment to go through, you’ll need the customer’s new account information.
Thankfully, there is a way to resolve this error. In fact, it’s a pretty simple solution.
Solutions to Fix R02 Return Code
Resolving an r02 return code is not complicated. First, try contacting the customer directly and requesting that they update their account information. Their contact details should be somewhere in their account. Then, try the payment again. If the payment still does not go through, you may need to do some more digging. You can try the customer again or reach out to your merchant processor for help.
Now you know what to do about an R02 return code. If you’re unsure about other codes, make sure to reference the full list of error codes often. This will help you become more familiar with different issues that you may come across. ACH payments are a great tool to make payment processing easy and simple. Whether you need to collect rent on a monthly basis, have customers who prefer to pay via ACH for their subscription service, or otherwise, ACH payment processing is a great way to accomplish this.
