ACH Forms

R23 ACH return code: Credit Entry Refused by Receiver

What R23 means

The person or business the money was sent to refused the deposit, so their bank sent it back.

Checked against 5 sources. Last reviewed .

R23 key facts

Official title Credit Entry Refused by Receiver
Other names you may see Credit Refused by Receiver. A Federal Reserve manual uses it. Credit Entry Declined by Receiver. A bank's code list uses it. Credit Declined by Receiver. An EPCOR guide uses it.
Returned by Receiving bank (RDFI)
Time frame 2 banking days after the refusal
The receiving bank must send the return by the opening of business on the second banking day after its customer told it they refuse the payment. The time is not counted from the original settlement date.
Applies to Consumer and business accounts
Can you send it again? Yes, once you have agreed the right amount or account with the payee. Send it as a new payment.
Type of return Standard return

Sources differ on the exact title. Some print "Credit Entry Declined by Receiver". Nacha changed the rule wording from "refused" to "declined" in 2019. The meaning is the same.

Why R23 happens

  • The amount was wrong, for example less than the minimum or exact amount due.
  • The payment was an overpayment.
  • The account is involved in a legal dispute.
  • The receiver does not know the sender, or did not agree to receive payments in that account.

What to do next

If you sent the payment

  1. Contact the payee to find out why the payment was refused.
  2. Send the correct amount, or pay in the way the payee asks.

If you got the notice about your own account

  1. Tell your bank that you refuse the payment. It then returns it to the sender.

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

Sources

  1. Minor Rules Topics (2019), Nacha
  2. FedGlobal ACH Payments Origination Manual, Federal Reserve Financial Services
  3. 2024 ACH Quick Reference Guide, EPCOR
  4. ACH Return, NOC and Transaction Codes, Commerce Bank
  5. ACH Return Reason Codes and Time Frames, CBS Bank

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.