ACH Forms

R05 ACH return code: Unauthorized Corporate-Coded Debit to a Consumer Account

What R05 means

A business-type debit (coded CCD or CTX) was sent to a consumer account, and the consumer says they did not authorize it.

Checked against 6 sources. Last reviewed .

R05 key facts

Official title Unauthorized Debit to Consumer Account Using Corporate SEC Code
Returned by Receiving bank (RDFI)
Time frame 60 calendar days
The receiving bank can send the return for up to 60 calendar days after the payment settled. It first gets a signed Written Statement of Unauthorized Debit from the account holder, then must send the return within six banking days of finishing its review.
Applies to Consumer accounts
Payment types CCD and CTX debits that reached a consumer account.
Can you send it again? No. A payment returned as unauthorized may not be sent again. A new payment needs a new authorization from the account holder.
Type of return Standard return. Counts toward your unauthorized return rate. Nacha's limit is 0.5% of your debits.
Written statement The bank needs a signed Written Statement of Unauthorized Debit from the account holder.

Why R05 happens

  • The payment was coded as business-to-business, but the account belongs to a person.
  • There is no signed consumer authorization for the payment.
  • A sole proprietor pays from a personal account.

What to do next

If you sent the payment

  1. Stop debiting the account. Do not send the payment again.
  2. If the customer does owe the money, get a signed consumer authorization and ask your bank or processor to use a consumer payment code.
  3. Keep the authorization. Your bank can ask you for proof.

If you got the notice about your own account

  1. Tell your bank as soon as you see the payment. Your bank can send it back through the ACH network for 60 days after it was taken. Federal law (Regulation E) also lets you report it up to 60 days after the bank sent the statement that first shows it.
  2. Your bank will ask you to sign a Written Statement of Unauthorized Debit.

Got a return file from your bank? Open it in the ACH file viewer to see the code next to each 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. Originator Essentials, Nacha Risk Management Advisory Group
  4. 2024 ACH Quick Reference Guide, EPCOR
  5. 2024 ACH Quick Reference Guide for Corporate Users, EPCOR
  6. 12 CFR 1005.11, Procedures for resolving errors (Regulation E), Consumer Financial Protection Bureau

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.