ACH Forms

R01 ACH return code: Insufficient Funds

What R01 means

The account did not have enough available money to cover the payment.

Checked against 6 sources. Last reviewed .

R01 key facts

Official title Insufficient Funds
Returned by Receiving bank (RDFI)
Time frame 2 banking days
The receiving bank must send the return so that it reaches the sending bank by the opening of business on the second banking day after the payment settled.
Applies to Consumer and business accounts
Can you send it again? Yes. You may send it again up to two more times, within 180 days of the original settlement date, for exactly the same amount. The retry must be labeled RETRY PYMT.
Type of return Standard return

Why R01 happens

  • The balance was too low on the day the payment arrived.
  • The payment was larger, or came earlier, than the customer expected.
  • Another payment cleared first and used up the funds.

What to do next

If you sent the payment

  1. Tell the customer the payment came back and ask when the money will be in the account.
  2. Try again if you wish. You may retry up to two more times, within 180 days of the original payment, for exactly the same amount. Your bank or software must label the retry RETRY PYMT.
  3. Do not add a fee to the retried amount. A returned payment fee, where the law allows one, is a separate payment the customer must have been told about.

Message you can send the customer

Change the words in [square brackets] before you send it.

Hello [name], Your ACH payment of [amount] dated [date] was returned by your bank because the account did not have enough available money (return code R01). Please tell us when the money will be in the account. We will try again on that date for the same amount. If you would rather pay another way, let us know. Thank you, [business]

If you got the notice about your own account

  1. Check your balance and the date the payment was due.
  2. Add money to the account and tell the business when it can try again, or pay another way.
  3. Ask your bank and the business whether they charged a returned payment fee.

Got a return file from your bank? Open it in the ACH file viewer to see the code next to each payment.

Questions and answers

How many times can I retry an ACH payment returned R01?

Two more times after the first return, so three attempts in total. Every retry must be within 180 days of the original settlement date, for the same amount, and labeled RETRY PYMT. Splitting the amount or adding a fee to it is not allowed.

Does R01 mean the bank account is closed or wrong?

No. R01 means the account exists and is open, but it did not have enough available money on that day. A closed account comes back as R02 and a wrong account number as R03.

Can I charge a fee when a payment is returned R01?

To collect the fee by ACH from a personal account, you must have told the customer about it in advance, and your state must allow the fee. Federal Regulation E says the notice must state that the fee may be collected electronically and give the dollar amount. If the fee varies, the notice may explain how it is worked out instead. Read more in ACH return fees.

Sources

  1. ACH Risk Management 2023: Proposed Modifications to the Rules (Table of Return Reason Codes excerpt), Nacha
  2. 2024 ACH Quick Reference Guide, EPCOR
  3. 2024 ACH Quick Reference Guide for Corporate Users, EPCOR
  4. ACH Return, NOC and Transaction Codes, Commerce Bank
  5. ACH Return Reason Codes and Time Frames, CBS Bank
  6. 12 CFR 1005.3(b)(3), fees for returned payments (Regulation E), Consumer Financial Protection Bureau

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General information, not legal or financial advice. Rules change and banks set their own requirements. Check with your bank before you act. ACH Forms is not affiliated with Nacha.