ACH Return Code R20

In ACH payments, ACH Return Code R20 indicates that a transaction was returned because the account involved is a "Non-Transaction Account." This means the account type, such as a savings account, is not eligible to process ACH payments, which are typically limited to checking accounts. 

Understanding R20 helps identify and resolve issues where payments are attempted from accounts that cannot be used for electronic transfers.

What Is an ACH Return Code

An ACH return code explains why an ACH payment failed. This three-character code is used to clarify the reason a transaction was returned. It helps both the Originating Depository Financial Institution (ODFI) and the Receiving Depository Financial Institution (RDFI) communicate effectively during electronic transfers.

In the ACH payment process, return codes pinpoint specific issues. With around 85 different codes, each corresponds to a unique problem with an electronic payment. Understanding these codes is crucial for preventing issues with financial transactions.

What Is ACH Return Code R20

ACH Return Code R20 indicates that the transaction was returned because the account involved is a "Non-Transaction Account." This means the account type, such as a savings account, does not allow for ACH payments or other transaction-based activities. As a result, the payment cannot be processed through the ACH network. 

This return code helps identify when an account is not eligible for ACH transactions, ensuring that future payments are attempted using a suitable account type, such as a checking account.

How to Fix ACH Return Code R20

To fix ACH Return Code R20, first verify that the account used for the transaction is a valid transaction account, such as a checking account. Non-transaction accounts, like savings accounts, cannot process ACH payments. 

If the payer's account is a non-transaction account, inform them of the issue and request a valid checking account for the payment. Once the correct account information is provided, update the payment details and attempt the transaction again. 

Also, ensure that the account is active and in good standing to prevent further issues during ACH processing.