R10 ACH return code: Originator Not Known or Not Authorized
The customer told their bank that they do not know the business, or never authorized it to take money from the account.
R10 key facts
| Official title | Customer Advises Originator is Not Known to Receiver and/or Originator is Not Authorized by Receiver to Debit Receiver's Account |
|---|---|
| Other names you may see | Customer Advises Not Authorized. The first words of an older title. Some bank lists still show it. |
| 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 Also used when a payment sent with a consumer payment type, such as ARC, BOC or POP, was taken from a business account. An unauthorized CCD or CTX payment from a business account uses R29. |
| 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. |
R10 was narrowed on April 1, 2020. Payments that were authorized but had an error (wrong amount, wrong date) now use R11.
Why R10 happens
- No authorization was ever obtained from the account holder.
- The customer did not recognize the company name on their bank statement.
- Someone else used the customer's account number.
- The person who signed the authorization does not own the account.
What to do next
If you sent the payment
- Stop debiting the account. Do not send the payment again.
- Find the signed authorization. Your bank may ask you for proof.
- If the customer does owe you money, contact them and get a new authorization before any new payment.
- Check that the name on your customers' bank statements is one they will recognize.
If you got the notice about your own account
- 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. For a personal account, federal law (Regulation E) also lets you report it up to 60 days after the bank sent the statement that first shows it.
- 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.
Questions and answers
What is the difference between R10 and R11?
R10 means the customer says there is no authorization at all, or does not know you. R11 means an authorization exists, but this payment did not follow it, for example the amount or date was wrong. After R11 you can fix the error, if it can be fixed, and send a corrected payment. After R10 you need a new authorization.
How long does a customer have to return a payment as R10?
The bank can return it for up to 60 calendar days after the payment settled. An unauthorized business payment (CCD or CTX) taken from a business account must be returned by the opening of business on the second banking day after it settled and uses R29.
Can I dispute an R10 return?
Your bank can refuse (dishonor) a return only on narrow grounds, such as a return sent after the deadline. Whether the customer owes you the money is a matter between you and the customer, outside the ACH network. Your bank can ask the customer's bank for a copy of the signed statement.
Sources
- Differentiating Unauthorized Return Reasons, Nacha
- ACH Network Risk and Enforcement Topics (return rates, reinitiation), Nacha
- Originator Essentials, Nacha Risk Management Advisory Group
- 2024 ACH Quick Reference Guide, EPCOR
- 2024 ACH Quick Reference Guide for Corporate Users, EPCOR
- 12 CFR 1005.11, Procedures for resolving errors (Regulation E), Consumer Financial Protection Bureau
- ACH Return Reason Codes and Time Frames, CBS Bank
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.