R71 ACH Return Code: Misrouted Dishonor Return

Although accepting ACH payments is usually hassle-free, encountering an ACH return code R71 can complicate things. When dealing with returned transactions, you may experience error messages called ACH return codes. These return codes indicate the reason behind why transactions return, and oftentimes the explanation is still unclear to merchants. Understanding these return codes and the reasons behind them is crucial for businesses relying on the ACH system for payment processing.

The Automated Clearing House (ACH) is a giant network connecting financial institutions in the United States, through an electronic system. This network is overseen by the National Automated Clearing House Association, also known as NACHA. An ACH payment is one of the many types of electronic funds transfers (EFT). Other EFT payments include ACH transfers, debit card charges, electronic checks, wire transfers, banking by phone, personalized computer banking, and ATMs.

Today, we’ll focus on ACH return code R71 and what you can do to resolve this error. Let’s get started!

What Does ACH Return Code R71 Mean?

ACH return code R71 is similar to return code R61, but instead of referring to a misrouted return, R71 refers to a misrouted dishonored return. This means that the issue stems from the Originating Depository Financial Institution (ODFI) instead of the Receiving Depository Financial Institution (RDFI). To be specific, the financial institution preparing the dishonored return entry (the ODFI in this case) has entered an incorrect routing number into the RDFI’s identification field (or the recipient’s bank).

The formal definition for R71 return code — Misrouted Dishonor Return is as follows:

The financial institution preparing the dishonored return entry (the ODFI of the original entry) has placed the incorrect routing number in the receiving DFI Identification field.^[1]Actum Processing. “Understanding ACH Return codes“. Accessed March 8, 2023.

Solutions to Fix R71 Return Code

If you come across ACH return code R71, a good first step is to obtain the contact information for the specific ODFI that prepared the original transaction. Once you are in touch with their ACH operations department, explain the issue in detail. They can fix the dishonored return by inputting the correct routing number. Once resolved, you are all set to accept ACH payments smoothly again!