ACH Forms

R02 ACH return code: Account Closed

What R02 means

The bank account was open before, but it has now been closed by the customer or by the bank.

Checked against 6 sources. Last reviewed .

R02 key facts

Official title Account Closed
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? Not to the same account. Send a new payment once you have the details of an open account and authorization to use it.
Type of return Standard return. Counts toward the administrative return rate (3% level).

Why R02 happens

  • The customer switched banks and did not update their details with you.
  • The bank closed the account.
  • You are using old details from an earlier authorization.

What to do next

If you collected the payment from a customer

  1. Stop sending payments to this account.
  2. Ask the customer for their new bank details and get authorization for the new account.
  3. Update your records before the next payment is due.

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 is closed (return code R02). Please send us the details of your current bank account on a new authorization form, so we can update our records. Thank you, [business]

Need a form to send with it? Make an ACH authorization form.

If you paid someone (payroll or a supplier)

  1. The payment goes back to the bank that sent it (the originating bank), and from there to the sender. If a payroll service sent it for you, ask the service about it.
  2. Ask the employee or supplier for the details of their open account, on a direct deposit form (an employee) or a vendor ACH form (a supplier).
  3. Confirm the new details with the person in person, or by calling a phone number you already had (not one from the email or the form). See ACH fraud prevention.
  4. Update your records and send a new payment to the open account.

Message you can send the employee or supplier

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

Hello [name], We tried to pay you [amount] on [date], but your bank sent the payment back because the account is closed (return code R02). Please send us the details of your current bank account on the attached form, so we can pay you again. Thank you, [business]

Need a form to send with it? Make a direct deposit form for an employee or a vendor ACH form for a supplier.

If you got the notice about your own account

  1. Give the business or payer your new bank details. If you are paid by ACH, an ACH information form makes this simple.
  2. If you are expecting a deposit, ask the sender to pay again to your open account.

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

What is the ACH return code for a closed account?

R02, Account Closed. It is used when an account that used to be active has been closed by the customer or by the bank.

What is the difference between R02 and R03?

R02 means the account existed and has been closed. R03 means the bank cannot find an open account that matches the account number and name on the payment.

Sources

  1. ACH Network Risk and Enforcement Topics (return rates, reinitiation), Nacha
  2. ACH Risk Management 2023: Proposed Modifications to the Rules (Table of Return Reason Codes excerpt), Nacha
  3. Green Book: A Guide to Federal Government ACH Payments, US Treasury, Bureau of the Fiscal Service
  4. 2024 ACH Quick Reference Guide, EPCOR
  5. 2024 ACH Quick Reference Guide for Corporate Users, EPCOR
  6. Cyber Criminals Conduct Business Email Compromise through Exploitation of Cloud-Based Email Services (verify payment changes in person or on a known phone number), FBI Internet Crime Complaint Center

Last reviewed . How we check our information. Report a mistake on this page.

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.