--- title: "ACH Rejects: 4 Codes Business Owners Should Know" description: Familiarize yourself with these four common codes for ACH rejects so you can quickly resolve issues and avoid ACH account number reject fees. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/ach-reject-codes.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. 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That said, ACH reject codes still come days after the transaction is initiated — and sometimes incur an ACH reject fee — so it’s important to know how to resolve these rejects and provide the right information to your customers. To quickly rectify these rejects, it’s vital to familiarize yourself with the most common ACH rejects and how to solve them. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## 4 Reasons for ACH Rejects 1. **“R01 Insufficient Funds” means the available balance is not sufficient to cover the amount of the debit entry**. After receiving this ACH reject code, there isn’t much you can do other than rerun the transaction. It’s likely the customer will need to transfer money into his account, or use a different payment method, before you try again. 2. **“R02 Bank account closed” occurs because a customer closed a previously active account**. When you encounter this ACH reject code, it’s probably because the customer genuinely forgot to notify you. If a customer closes his account that’s linked to a [recurring payment schedule](https://blog.payjunction.com/recurring-billing-benefits/), the next scheduled payment would receive a R02 reject code. 3. **“R03 No bank account/unable to locate account” can trigger for two reasons**. The account number entered does not correspond to the individual identified in the entry, or the account number indicated is not an open account. In short, some combination of the data given (account number and name on account) doesn’t match the bank’s records or a nonexistent account number was entered. Here's [how to recharge a rejected R03 transaction](https://support.payjunction.com/hc/en-us/articles/213187977-How-do-I-recharge-a-rejected-ACH-transaction-) in our system. 4. **A “R29” reject occurs when a bank doesn’t allow a processor to withdraw funds from a particular bank account**. As a business, your hands are tied in this instance. The customer’s bank will need the [originating ID for the ACH payment](https://support.payjunction.com/hc/en-us/articles/210469348-What-does-an-R29-Rejected-ACH-transaction-mean-) to enable the withdrawal. It’s important to know that some of these ACH rejects can trigger [notifications of change](https://blog.payjunction.com/notifications-of-change/) (NOCs). For example, if the account number is closed (R02) and the bank says a new account number is available, you will receive a NOC and incur an ACH account number reject fee. At some point, you’ll encounter an ACH reject fee. In addition to familiarizing yourself with these common reject codes so you can quickly resolve the next reject you encounter, you should make sure your [ACH processing](https://blog.payjunction.com/ach-payment-processing) system is helping you as much as possible. Working with a processing system that helps streamline fixes instead of slowing you down will only improve your operations, cash flow and customer relationships. ## Take a look at a supportive ACH payment solution today. Do you process ACH transactions and run into rejects often? Which error codes do you tend to see? We'd love to hear from you! [ACH](https://blog.payjunction.com/topic/ach) [Virtual Terminal](https://blog.payjunction.com/topic/virtual-terminal) --- ##### [![6 Green Technologies to Go Paperless at the Workplace](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/green-technologies.svg) 6 Green Technologies to Go Paperless at the Workplace](https://blog.payjunction.com/green-technologies) ##### [![What Is a Monthly Minimum Fee?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/monthly-minimum-fee.svg) What Is a Monthly Minimum Fee?](https://blog.payjunction.com/monthly-minimum-fee) ###### About Author ![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=200&height=200&name=Ursula_Librizzi.jpg) ### Ursula Librizzi Ursula is the sales and marketing operations manager for PayJunction. She oversees daily marketing tasks and liaises between the sales and marketing departments. ###### Related Posts ## [![ACH Rejects and Processing Explained](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/ach-processing-defined.svg) ACH Rejects and Processing Explained ACH stands for Automated Clearing House, a network managed by NACHA. The network enables the electronic transfer of funds from one bank to another by directly debiting a consumer or business checking or savings account. It is commonly used for payroll, bills and invoices, and tax payments. ACH transaction fees are lower than those of credit and debit cards, so it is a popular cost-effective payment type, especially for higher ticket purchases.](https://blog.payjunction.com/ach-processing-defined) ## [![How to Handle Notifications of Change (NOCs)](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/notifications-of-change.svg) How to Handle Notifications of Change (NOCs) A notification of change (NOC) occurs when the bank sending funds notifies the bank receiving funds that some portion of the once-valid information has changed. This could result from a bank buying another bank, which would cause routing numbers to change. With NOCs, ACH transactions will run successfully, but your business will incur a fee. These notifications of change are inevitable, but they could eat away at your profits if you’re not with the right provider.](https://blog.payjunction.com/notifications-of-change) ## [![Accept ACH Payments: The Complete Guide](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/how-to-recieve-ach-payments.svg) Accept ACH Payments: The Complete Guide What is an ACH Payment? As a consumer, you have likely made payments via ACH, even though you may not be familiar with the acronym. ACH stands for Automated Clearing House, which is the official network connecting US banks to the Federal Reserve. Electronic payments can be made directly from a bank account (ACH debit) using the routing and account numbers. ACH is also called an “electronic check” or “E-check.” It is typically used for bills, invoices, utility payments, and tax payments. 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