You are here

ACH Return Code R06: Explained

ACH Return Code R06 indicates a return caused by the receiver not being authorized to receive entries of the type specified. This code could also be used in cases where the account is closed or if there is no connection between the originator and receiver. In such a case, the receiving financial institution must immediately return all entries which have been sent to the account.
 
The ACH R06 return code is typically generated when a receiver has not authorized the transaction in question, or if there's no authorization agreement between the originator and receiver. This could be due to an invalid routing number, account number or miscommunication between the two parties involved.
 
To prevent this type of error, it is important for both parties to verify the accuracy of details such as the account number and routing number before initiating a transaction. This can be done by contacting the receiving institution or using an ACH validation service.
 
It is essential that originators and receivers clearly communicate their authorization agreements before initiating a transaction. This will help to ensure that transactions can be processed successfully and without any issues. Furthermore, originators should also review the account status of the receiver before initiating a transaction. This will help to avoid any delays caused by attempting to send funds to an inactive or closed account.
The ACH return code R06 is used when a transaction cannot be completed due to a lack of authorization or connection between the originator and receiver. It is important to ensure accurate details are provided and that both parties have a valid agreement before initiating any transactions. With these steps, it is possible to help prevent this type of return code from occurring.