ACH Return Code R32

ACH Return Code R32 indicates RDFI Non-Settlement, meaning the Receiving Depository Financial Institution (RDFI) was unable to settle the transaction. This typically occurs when the RDFI is not able to process ACH entries due to financial or operational issues. 

Understanding this code helps in identifying and resolving settlement-related payment failures.

What Is an ACH Return Code

In ACH payments, an ACH return code is a three-character code used in the Automated Clearing House (ACH) network to indicate why a transaction has been rejected or returned by a receiving bank. These codes are managed by NACHA and help identify specific issues that prevent a payment from being successfully processed, such as incorrect account information, insufficient funds, or account closure. 

Each code corresponds to a particular reason, allowing businesses and financial institutions to understand the cause of the return and take appropriate corrective action. Return codes are essential for maintaining smooth and accurate electronic payment operations.

What Is ACH Return Code R32

ACH Return Code R32 refers to RDFI Non-Settlement, which means that the Receiving Depository Financial Institution (RDFI) is unable to settle the transaction. This usually happens when the RDFI is no longer able to participate in the ACH network due to operational, financial, or regulatory issues. 

As a result, any ACH entries sent to that institution are returned. This code helps alert the Originating Depository Financial Institution (ODFI) or originator that the payment could not be completed because the RDFI cannot process settlements.

How to Fix ACH Return Code R32

To fix ACH Return Code R32 (RDFI Non-Settlement), stop attempting transactions to the affected Receiving Depository Financial Institution (RDFI), as it is unable to settle ACH entries. The RDFI may be suspended, closed, or otherwise ineligible to process ACH transactions. 

The best course of action is to contact the customer or recipient to obtain updated banking information linked to a valid and operational financial institution. Once you have the correct details, you can reinitiate the payment. Always verify new banking information carefully to avoid further returns.