R08 ACH Return Code: Payment Stopped

What is Return Code R08?

Worldwide, businesses have been increasingly turning to digital payment solutions for transactions. Whether used for B2C or B2B payment processing, digital transactions are here to stay. A recent study by Statista showed that in the U.S. alone, over 77% of transactions were made using credit, debit card, and mobile wallet methods. While these digital payments are proving to be more efficient for businesses, there is a drawback…error codes. When an ACH payment declines, you will receive one of 85 ACH return codes. One such error code is the r08 return code. If you see r08 appear on your merchant terminal, this article is here to help you decipher its meaning and resolve it swiftly. 

What does ACH Return Code R08 Mean?

ACH return code r08 signals to the merchant that the customer/account owner has placed a stop payment. A stop payment is when a consumer uses their right under the Fair Credit Billing act to have their financial institution cancel a transaction. Perhaps the customer reconsidered their purchase or realized they can’t afford it. Whatever the reason, they’ve made a claim.

Formal Definition

ACH return code r08 means “payment stopped.” A stopped payment does not signify that all is lost. It simply indicates that for one reason or another, a customer has decided the purchase cannot move forward. A customer can request to stop a payment so long as the transaction is over $50 in value and the customer lives 100 miles within the store location.

Solutions to Fix R08 Return Code

There is no reason to fret should you experience an ACH return code r08 message. There are a few steps that you can take to understand the issue and resolve it:

1. Contact the customer – was there an issue with the product/service? Was there a financial event that caused them to simply not want to use the card made in the initial purchase? Find out exactly what the root issue is.
   
2. The customer can be issued a return instead or another card may be used with their authorization to re-enter the payment. It is important to note that the same bank account cannot be used if the customer wishes to continue with a future transaction (instances of recurring payments for example). If the same account is used, you will be issued a fine. Make sure to delete the original account information and update it with new account information as soon as possible.
   
3. If the customer wants to dispute this payment because they did not authorize it, a claim will be made and the RDFI will investigate the matter.

Don’t Let Return Code Errors Slow You Down

If your business is accepting ACH payments, it’s crucial learn everything about ACH return codes to arm yourself with the knowledge on how to resolve any obstacle that may come your way. While some return codes may involve more time to resolve than others, there is always a solution. It is best to keep a list of common ACH return codes handy as these errors will inevitably come about.