ACH Error Code R34 - What is this?

ACH code R34 is a standard entry code that represents a return of an erroneous credit entry. This code is used by the receiving depository financial institution (RDFI) to return a credit entry that was mistakenly credited to a receiver’s account.

There are several reasons why a credit entry might be returned as erroneous, such as:

1. Incorrect account number or routing number: The account number or routing number provided with the credit entry needs to be corrected, and the transaction cannot be posted to the receiver’s account.

2. Duplicate entry: The same credit entry was submitted twice, resulting in an overpayment to the receiver’s account.

3. Incorrect dollar amount: The dollar amount of the credit entry needs to be corrected, resulting in an overpayment or underpayment to the receiver’s account.

When an RDFI returns a credit entry using the R34 code, it must provide a reason code that explains why the entry is being produced. The originator of the credit entry will receive a notification of the return, including the reason code, so that they can correct any errors and resubmit the transaction if necessary.

Originators need to ensure that they have accurate and up-to-date information for the receivers of their transactions to avoid errors and prevent returns.