ACH return code R69 is just one of the many return codes that you receive when an electronic funds transfer doesn’t transmit properly. These specific codes essentially go through the Automatic Clearing House (ACH) network and are used to notify the bank’s system by providing a reason for each failed transaction.
To grasp the full scope of ACH return codes, you’ll need to understand exactly what the Automatic Clearing House does. ACH is an electronic network that connects banks and financial institutions within the United States. It allows customers to send and receive electronic payments and is overseen by The National Automated Clearing House Association (NACHA). The two financial institutions that ACH operates through when transmitting funds are called the ODFI and the RDFI. The Originating Depository Financial Institution (ODFI) initiates the payments and the Receiving Depository Financial Institution (RDFI) receives them. So, when there is an issue within either of these systems, a return code is sent.
While ACH return codes seem complicated, they can be easily fixed with the right guidance. Throughout this article, we’ll go over what the R69 code means, what to expect, and how to fix it if you ever come across it.
What Does ACH Return Code R69 Mean?
Return code R69 simply means that the information in one of the fields of the return is incorrectly entered by the ODFI. Most commonly, this means that the account number provided does not correspond to an active account, or the name on the account does not match the name provided in the transaction. For example, let’s say a customer provides their bank account information for a recurring payment, and mistakenly enters the wrong account number. When the transaction is processed and the account number doesn’t match the name on the account, it will be returned with an R69 return code. As a merchant, you’ll need to obtain the correct account information from the customer to ensure that future transactions are processed successfully.
Please note: ACH return code R69 does not apply to IATs (International ACH Transactions).
The formal definition for the R69 return code—Field Error(s) is as follows:
“One or more of the field requirements are incorrect. The ODFI must insert the appropriate
code(s) from below, separated by an asterisk (*), within the addenda information field of the
addenda record format for dishonored returns to indicate the field(s) in which the errors occur.
- 01- Return contains incorrect DFI account number
- 02- Return contains incorrect Original Entry Trace Number
- 03- Return contains an incorrect dollar amount
- 04- Return contains incorrect Individual Identification Number/Identification Number
- 05- Return contains incorrect Transaction Code
- 06- Return contains incorrect Company Identification Number
- 07- Return contains an Invalid Effective Entry Date”
Solutions to Fix R69 Return Code
Normally to fix a return code, you would reach out to the RDFI. However, in this case, you can only fix the R69 return code by contacting the Originating Depository Financial Institution. Start by identifying which bank your customer’s ODFI is, and contact their ACH operations group to notify them of the return code error. Then, the ODFI will input the proper code, depending on which field is incorrect. Afterward, you can ask the ODFI to initiate a new return with the correct information. When this process is complete and the error is fixed, you can continue accepting ACH payments!