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As a business owner, you made the decision to accept Automated Clearing House (ACH) payments. But, in doing so, you may have received ACH return code R24. Not to worry, this post explains why ACH return code R24 generates, as well as how to troubleshoot the underlying issue.
Accepting ACH payments can be very beneficial due to the relatively low costs of ACH payment processing, high retention rate, and accessibility in that anyone with a U.S. bank account is able to utilize this method to electronically transfer funds. The overwhelming majority of ACH transactions will complete successfully, without a hitch. But you may occasionally receive a return code when attempting to process a payment.
An ACH return code may generate for a number of reasons. In fact, the National Automated Clearing House Association (NACHA)—the governing body of the ACH Network—has a list of over 80 different ACH return codes that generate for different issues. Understanding these codes is important to make it easier for you, as well as your customer, when handling these ACH transactions. Below explains what the R24 return code means, as well as possible solutions for the snag in processing.
What Does ACH Return Code R24 Mean?
When you receive an ACH return code, it means that the ACH transaction was unable to collect or deposit the funds from or to your customer’s account. The particular ACH return code generated—in this case, ACH return code R24—details why the funds couldn’t be collected or deposited.
When you receive the R24 ACH return code, it means that the transaction looks like a duplicate entry. The reason the transaction looks like a duplicate could be if the dollar amount, date, or other identifying information matches another transaction.
As a merchant, you should be especially careful if you receive ACH return code R24. This is because the originator may have already reversed one of the duplicate transactions. Thus, generating a reversal transaction for both of the duplicated items can cause additional hassles or mistakes.
The formal definition of the R24 return code is that the Receiving Depository Financial Institution (RDFI) has received what appears to be a duplicate entry. This means that the trace number, date, dollar amount, and/or other identifying data match another transaction.
Solutions to Fix R24 Return Code
There are a few ways to handle ACH return code R24. Verifying if the entry was indeed duplicated is the first step. Handle a duplicated transaction like a return. This will rectify the situation. In addition, you may also request that the RDFI send a return.
A merchant may reverse an erroneous or duplicate ACH entry that receives ACH return code R24 up to five business days after the Settlement Date of the entry. In the event that the ACH transaction has already been reversed, you shouldn’t process a return. Instead, you should contact your financial institution and explain the situation to them. This way, they can determine the best solution for how to proceed.