ACH Forms

R20 ACH return code: Non-Transaction Account

What R20 means

The account is a type that does not allow this kind of payment, such as some savings or loan accounts.

Checked against 5 sources. Last reviewed .

R20 key facts

Official title Non-Transaction Account
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 an account that accepts ACH and authorization to use it.
Type of return Standard return

Why R20 happens

  • The account limits or prohibits ACH payments.
  • A debit was sent to an account that only accepts deposits.

What to do next

If you sent the payment

  1. Ask the customer for a checking account, or another account that accepts ACH payments.
  2. Get authorization for the new account, update your records and send a new payment.

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 because the account does not accept this kind of ACH payment (return code R20). Please send us the details of a checking account, or another account that accepts ACH payments, 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 got the notice about your own account

  1. Ask your bank which of your accounts can be used for ACH payments, and give the business those details.

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 a non-transaction account?

It is an account where payments are prohibited or limited. Some savings accounts, certificates of deposit and loan accounts work this way. The fix is to use a checking account or another account that accepts ACH payments.

Sources

  1. Green Book: A Guide to Federal Government ACH Payments, US Treasury, Bureau of the Fiscal Service
  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

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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.