ACH Returns
ACH is the bank-to-bank network used for direct payments from a checking account (rather than a card). Because banks confirm ACH transfers in batches over a few days, an ACH payment that first looked successful can later be returned by the customer's bank.
When that happens, the money is pulled back out, the payment flips out of Paid, and the invoice reopens so you can collect again.
ACH returns are normal and not a sign that anything is broken. They are the banking network's way of saying the transfer could not complete. The return reason tells you why.
What happens when a payment is returned
The bank returns the payment
Days after the customer paid, their bank reverses the ACH transfer for one of the reasons below.
The payment is reversed in Sync Pay
The payment no longer counts toward the invoice. If it had already been included in a deposit, that amount is reconciled out of a later deposit.
The invoice reopens
The invoice goes back to open for the returned amount so you can request payment again.
You follow up with the customer
Reach out and collect again, usually with a card or a corrected bank account.
Common return reasons
ACH returns come with a standardized reason code. These are the ones you are most likely to see. Some can be retried, and some cannot.
| Code | Reason | Can you retry? |
|---|---|---|
R01 | Insufficient funds | Yes, once funds are available |
R02 | Account closed | No, get a new account or card |
R03 | No account / unable to locate account | No, the details are wrong |
R04 | Invalid account number | No, re-enter correct details |
R08 | Payment stopped | No, the customer stopped it |
R10 | Customer says the charge was not authorized | No, do not retry |
R16 | Account frozen | No |
R20 | Not a transaction account | No, use a different account |
R29 | Business customer says not authorized | No, do not retry |
Do not keep retrying a payment returned as unauthorized (R10 or R29) or for a closed or invalid account. Retrying these can lead to penalties. Ask the customer for a different payment method instead.
There are many more ACH return codes than the common ones above. If you see a code that is not listed here and you are not sure what it means, contact support and we can interpret it for you.
Reducing ACH returns
- Double-check bank details at entry. Most returns are simple typos in the routing or account number.
- Confirm funds for large jobs. For big invoices, an insufficient-funds return is more likely. A card may be a safer choice.
- Switch chronic returns to card. If a fleet or customer keeps bouncing ACH payments, ask them to keep a card on file instead.