ACH Error R35 - What is this?

ACH code R35 is a standard ACH return code that indicates that an ACH debit entry has been returned because it was improperly initiated or was not authorized by the receiver. This return code is used by the receiving depository financial institution (RDFI) to notify the originating depository financial institution (ODFI) that the debit entry cannot be processed and has been returned.

Some possible reasons for the return of an improper debit entry under ACH code R35 may include the following:

• The receiver of the funds did not authorize the debit entry.

• The debit entry was initiated with incorrect or incomplete information, such as a wrong account or routing number.

• The debit entry was instituted for an amount more significant than what was authorized by the receiver.

• The debit entry was commenced on an account closed or needing more funds.

It is important to note that ACH code R35 does not necessarily mean that the ODFI acted improperly or maliciously. Instead, it indicates that the debit entry must be authorized appropriately or initiated. If you receive a notice of an ACH return under code R35, you should contact your bank or financial institution for more information on why the entry was returned and what steps you need to take to correct the issue.