Payments6 min readUpdated October 15, 2026

What Is an ACH Return?

An ACH return is a payment the customer's bank sends back with an R code. Codes, 2-day and 60-day windows, retry rules, Nacha limits and reversals.

Nick Bonnassies, CMO at Tagada · checked against 11 sources

Article summary

TL;DR

An ACH return is an ACH payment that the receiving bank sends back unpaid, with a return reason code such as R01 (insufficient funds) or R10 (not authorized). Most returns must come back within 2 banking days. Unauthorized returns on consumer accounts can arrive up to 60 calendar days later, and the code decides whether you may retry.

The customer's bank (the RDFI) starts a return. The sender starts a reversal, only to fix its own error, within 5 banking days.
Most return codes have a 2-banking-day window. R05, R07, R10 and R11 on consumer accounts have 60 calendar days.
After R01 or R09 you may retry up to 2 more times, within 180 days of the original settlement date, marked RETRY PYMT.
Never retry an unauthorized return without a new authorization: Nacha treats it as improper reinitiation.
Nacha watches three rates: 0.5% unauthorized, 3% administrative, 15% overall, over 60 days or two calendar months.

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On this page

An ACH return is the bank-debit version of a bounced payment. This page defines it, lists the codes and deadlines, and explains the rules on retries, reversals and return rates. For the full ACH flow, see ACH payment processing. For what to do step by step when a debit comes back, see return item chargebacks and ACH returns.

What is an ACH return?

An ACH return is an entry that the Receiving Depository Financial Institution (RDFI), the customer's bank, sends back to the Originating Depository Financial Institution (ODFI), your processor's bank. It carries a return reason code: the letter R and two digits. Nacha, which writes the ACH rules, uses these codes to classify returns and to measure each sender's return rates.1

Returns hit debits most of the time, because the sender pulls money it hasn't seen yet. A credit can be returned too, for example a payout to a closed account; see bank payout.

How an ACH return works

You send a debit. The customer accepted a mandate at checkout, and your processor sends the ACH debit.
The customer's bank checks it. No funds, a closed account, a wrong number, or the customer says they didn't authorize it.
It sends the entry back with a code. For example R01 for insufficient funds.
The money comes back out. At Stripe, an ACH debit takes up to 4 business days to succeed or fail, and funds already in your balance are removed right away if it fails.7
You act on the code. Retry, fix the details, or ask for a new authorization.

Sources: Stripe Docs, ACH Direct Debit payments; Nacha rules pages. Illustrative order flow.

ACH return codes: meaning, time frame and retry

Nacha defines dozens of codes. These are the ones an online store sees most.

Code	Meaning	Time frame	Retry allowed?
R01	Insufficient funds	2 banking days	YesUp to 2 more times
R02	Account closed	2 banking days	NoAsk for another account
R03	Account not found, or name and number don't match	2 banking days	Only after the details are fixed
R04	Invalid account number	2 banking days	Only after the details are fixed
R05	Consumer debit sent with a business (corporate) code, not authorized	60 calendar days	NoNew authorization needed
R07	Customer revoked the authorization	60 calendar days	NoNew authorization needed
R08	Payment stopped by the customer	2 banking days	Only with a new authorization
R09	Uncollected funds	2 banking days	YesUp to 2 more times
R10	Customer says the debit wasn't authorized	60 calendar days	NoNew authorization needed
R11	Authorized, but not as agreed (wrong amount or date)	60 calendar days	Corrected entry within 60 days of the return
R16	Account frozen, or returned per OFAC	2 banking days	NoAsk for another payment method
R20	Non-transaction account, such as some savings accounts	2 banking days	NoAsk for a checking account
R29	Business customer says the debit wasn't authorized	2 banking days	NoNew authorization needed

Meanings from Increase's ACH documentation; time frames from Modern Treasury's return code reference, both secondary summaries of the Nacha Rules, which are sold, not public.9 8 Retry rules from Nacha and its 2013 reinitiation bulletin.1 2 4 The R11 "corrected entry" path and its 60-day window come from Nacha.2

ACH return time frames

Two different 60-day clocks are often mixed up.

Day 0The debit settles
2 banking daysDeadline for most codes, and R29 on business accounts
60 calendar daysDeadline for R05, R07, R10, R11 on consumer accounts
After thatLate returns, decided between the banks

Nacha's clock runs from the settlement date and governs bank to bank. Stripe applies it to merchants: up to 60 calendar days for a personal account, two business days for a business account, and returns inside those windows are final.7

Regulation E's clock governs the customer and their own bank. A consumer must report an unauthorized transfer within 60 days after the bank sends the statement. The bank then has 10 business days to investigate, or up to 45 days if it credits the customer provisionally.10 So a customer can still win at their bank after Nacha's window. That is where late returns come from: the banks decide, and the customer's bank may ask for your proof of authorization.7

Can you retry a returned ACH payment?

Nacha calls a retry a reinitiation, and limits it to two times.3 The rules:

R01 and R09: up to 2 more attempts, within 180 days of the original settlement date.4
R08: only after the customer authorizes the debit again.4
Unauthorized returns: reinitiating any entry returned as unauthorized is improper, and so is retrying for a different amount.1
Format: the retry must say "RETRY PYMT" in the Company Entry Description, and attempts to evade the limit are banned.1

Stripe's automatic retries are stricter: at most 2, no more than 40 days after the first attempt, and only for insufficient funds.7 For card retries, see smart retry.

ACH return vs ACH reversal

The search "ACH reversal rules" usually means this distinction.

	ACH return	ACH reversal
Started by	The customer's bank (RDFI)	The sender (Originator or ODFI)
Why	Payment can't post, or the customer objects	The sender's own error
Valid reasons	Any listed return code	Duplicate, wrong receiver, wrong amount, debit dated earlier than intended
Deadline	2 banking days, or 60 calendar days for consumer unauthorized	Available to the RDFI within 5 banking days of settlement
If done wrong	Late or wrong returns go between the banks	Improper reversal returned with R17 (business) or R11 (consumer)

Reversal rules from Nacha.5 A reversal for any other reason, such as the sender not funding the payment, is improper.5 A refund is neither: at Stripe it's a separate credit you send, up to 180 days after the payment.7

ACH return rates and fees

Nacha measures your debit returns over the preceding 60 days or two calendar months.1

0.5%

Unauthorized return rate threshold: R05, R07, R10, R11, R29, R51

Administrative return rate level: R02, R03, R04

15%

Overall return rate level: all debit returns

Source: Nacha, rules effective September 18, 2015; R11 added to the unauthorized rate in 2020.1 2 Breaching 0.5% can lead to enforcement. Breaching 3% or 15% starts a Nacha inquiry, not an automatic violation, and fines come only at the end of an enforcement proceeding.1

Fees come from three directions:

Bank to bank. The ODFI pays the RDFI an Unauthorized Entry Fee on each unauthorized return, set at $4.50 when it started on October 3, 2016.6 Banks often pass it on, so ask yours for its current figure.
Processor to you. Stripe charges a failure fee when a debit fails after it showed as succeeded, and keeps the dispute fee on disputes.7
You to the customer. Under the Nacha bulletin, only for insufficient or uncollected funds, where the law allows it, with prior notice, and one fee per returned entry.4

How to reduce ACH returns

Most returns come from bad account details or a customer who doesn't recognize the debit. Verify the account before the first debit (see bank account verification). For recurring debits that change in amount, Regulation E requires written notice of the amount and date at least 10 days before.11 A consumer can also stop a preauthorized debit by telling their bank at least three business days before it.11 Clear mandates, recognizable descriptors and notice prevent most R07, R08 and R10 returns. The full checklist is in our return item chargeback guide.

Updated on October 15, 2026

Nick Bonnassies

CMO at Tagada

CMO at Tagada. Before Tagada, Nick built direct-to-consumer brands that generated over $115M in sales, raised over $25M in crowdfunding and sold two of them. He also works as a fractional CMO on marketing operations and AI systems.

Frequently asked questions

What happens if an ACH payment is returned?

The customer's bank sends the payment back with a return code, and the money comes back out of your account. At Stripe, if the funds were already in your balance, they are removed right away. Then the code decides your next step: retry after R01 or R09, fix the details after R03 or R04, or get a new authorization after R07, R10 or R29.

How long does an ACH return take?

Most return codes must reach the sender's bank within 2 banking days of settlement. Consumer unauthorized returns (R05, R07, R10, R11) can come up to 60 calendar days after settlement. Business accounts are on the 2-day clock, R29 included. Rare late returns after those windows are handled between the banks.

What is an ACH return fee?

Three different fees go by that name. Your processor may charge you for a failed debit: Stripe charges a failure fee when a debit fails after it showed as succeeded. Your bank pays the customer's bank Nacha's Unauthorized Entry Fee on unauthorized returns and often passes it on. And you may charge the customer a return fee only for insufficient funds, with prior notice, where the law allows it.

What is the difference between an ACH return and an ACH reversal?

A return is started by the customer's bank, with a return code, because the payment can't or shouldn't post. A reversal is started by the sender to fix its own mistake: a duplicate, the wrong receiver, the wrong amount, or a debit dated too early. It must reach the receiving bank within 5 banking days of settlement.

What does return code R10 mean?

R10 means the customer told their bank the debit was not authorized: they don't know the sender or never gave permission. It applies to consumer accounts, has a 60-day window, and counts toward Nacha's 0.5% unauthorized return rate. You can't retry it. You need a new authorization from the customer first.

Is a returned ACH payment the same as a card chargeback?

No. Cards don't use ACH returns: a disputed card payment is a chargeback, and you can answer it with evidence. A consumer ACH return within its window is final, and Stripe says you can't contest it through the ACH network. Contact the customer instead.

Sources

Checked October 15, 2026

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