R29 ACH return code: Corporate Customer Advises Not Authorized
A business told its bank that it did not authorize this debit from its business account.
R29 key facts
| Official title | Corporate Customer Advises Not Authorized |
|---|---|
| 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 | Business accounts |
| 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. |
Why R29 happens
- There is no agreement with the business that allows the debit.
- The business uses an ACH debit block or filter at its bank and has not approved your company ID.
What to do next
If you sent the payment
- Stop debiting the account until you have a new authorization.
- Contact the customer. If they use a debit block or filter, give them your ACH company ID so their bank can allow your payments.
- Do not send the payment again without a new authorization.
If you got the notice about your own account
- Tell your bank the day you see the debit. The bank must return it by the opening of business on the second banking day after it settled.
- If you do want to pay this company, add its ACH company ID to your bank's approved list.
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
How long does a business have to return an unauthorized ACH debit?
The business's bank must return it by the opening of business on the second banking day after the debit settled, so the business has about one banking day to report it. Ask your bank for its cut-off time. After that the bank needs the permission of the bank that sent the payment and uses R31. For a consumer account the bank has 60 calendar days and uses R10.
Why did my customer return a payment as R29 when they owe the money?
A common reason is an ACH debit block or filter. The customer's bank rejects any debit from a company that is not on its approved list. Give the customer your ACH company ID and ask them to add it, then get a new authorization before you send the payment again.
Sources
- 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
- ACH Return, NOC and Transaction Codes, Commerce 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.