When processing ACH payments, you may encounter a situation in which the payment is rejected. Such rejection is accompanied by an ACH return code. And if you found this post, it’s likely you’ve received ACH return code R22. Once you’ve read this, you’ll understand rejections, particularly the ACH return code R22 and how to resolve it.
If you’ve received a different code, refer to the list 80 return codes, including information on how to troubleshoot each.
What is an ACH return?
An ACH transaction is an electronic bank-to-bank payment processed over the Automated Clearing House Network. Thousands of participating financial institutions in the United States use this network to process direct deposits, eChecks, recurring payments, and more. These types of transactions are popular among businesses because the fees associated are typically less expensive than credit card processing fees.
When you process a payment from a customer over this network, your bank uses a NACHA file  Nacha.org. ACH file Overview. Accessed January 21, 2022 to submit the transaction request to your customer’s bank. Once submitted, your own bank automatically funds this request. If your bank cannot refill these funds from your customer’s bank account, the funded money withdraws.
Payment rejection occurs for many reasons. Miskeyed entry and insufficient funds are among the most common causes. In any case, you will receive a three-character code that will clue you into what specifically went wrong with your transaction.
What Does ACH Return Code R22 Mean?
ACH return code R22 means that the individual ID entered into the “Customer ID” field was invalid. Typically, a miskeyed entry causes this error codification, not an issue with the bank or bank account.
It typically occurs as a result of customer-initiated payments. If you receive this error, your customer typing their information incorrectly on an online bill-pay portal is the most likely cause. Less commonly, it may be a result of a failed Machine Transfer Entry (MTE) from an ATM-assisted transaction.
The formal definition is as follows:
The Receiver has indicated to the RDFI that the number with which the Originator was identified is not correct. In CIE and MTE entries, the individual ID number is used by the Receiver to identify the account.
Solutions to Fix R22 Return Code
To fix return code R22, contact your customer and discuss rerunning the transaction. You may also request an alternative payment method. Specifically, here are some potential actions to ensure you receive the funds owed to your business:
- Contact your customer, explain why the transaction declined, and request they try the transaction again.
- Ask for an alternative payment method, such as a debit or credit card, to complete the payment on your end.
- Suggest they attempt the transaction using a different bank account.
- Request they return the goods in question (if applicable).
- Nacha.org. ACH file Overview. Accessed January 21, 2022