Check Processing

R65 ACH Return Code: Incorrect Transaction Code

a magnifying glass next to blocks spelling out "error 404" to represent ACH return code R65

ACH return code R65 is one of the numerous return codes generated in the event an ACH payment cannot be processed. ACH return codes help you discover why the transaction could not process, as they communicate the underlying error on your end or on the bank’s end that has prevented processing. In the upcoming sections, we will answer questions pertaining to these codes—and specifically, ACH return code R65. Additionally, we’ll dive into exactly how to fix this code!

What Does ACH Return Code R65 Mean?

a business owner looking a failed ACH transaction with a magnifying glass and asking what is ACH return code R65

An ACH return code generates as a result of a returned transaction via the Automated Clearing House (ACH). But what is the Automated Clearing House? The ACH is a digital network connecting numerous financial institutions in the United States, and ACH payments are the most common type of transaction funneled through this network.

ACH payments can be categorized into a larger group of payments called electronic fund transfers (EFTs). Generally, EFTs are more time-efficient, cost-effective, and secure than non-digital transfers. They were first introduced alongside automated teller machines (ATMs) in the 1960s. With the use of plastic magstripe cards and PIN numbers, customers were able to make transfers, withdrawals, and deposits.

Aside from ATMs, electronic funds transfers include umbrella electronic checks, wire transfers, and direct deposits. So, where do ACH payments fall on this list? ACH transfers are a form of direct deposits, and while processing such transactions, merchants sometimes run into error codes like the ACH return code R65.

An ACH return is a reversal of a funds transfer via the ACH Network. As the governing body of the ACH Network, the National Automated Clearing House Association (NACHA) sets the standards for ACH transfers. When an initiated ACH transfer doesn’t meet said standards, the transfer is returned accompanied by an ACH return code. And the accompanying code communicates how the ACH transfer failed to meet NACHA’s standards.

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Formal definition

Now, let’s explain the specific meaning of the ACH return code R65. This error code is sent when the Receiving Depository Financial Institution (RDFI) initiates a transaction code for the return that doesn’t match the original transaction’s code.

The formal definition of R65 Return Code — Incorrect Transaction Code is as follows:

The Transaction Code in the Entry Detail Record of the Return is not the return equivalent of the Transaction Code in the original entry. (All entries must be returned as received: i.e., credit as credit, debit as debit, demand as demand, savings as savings.)”[1] Resolvepay. “What are ACH return codes?“. Accessed January 19, 2023.

Solutions to Fix R65 Return Code

Because ACH return code R65 is much less common than other codes, the easiest way to fix it is by contacting an ACH operator at the RDFI. While requesting a return reversal, be prepared to inform the operator of relevant details associated with the transaction. A new return must be initiated with the correct transaction code in order to resolve ACH return code R65. But once this is complete, you’ll be able to start smoothly and reliably accepting ACH payments again!

a check in clouds to represent ACH return code R65

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Article Sources

  1. Resolvepay. “What are ACH return codes?“. Accessed January 19, 2023.

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