ACH Error Code R54 - What is this?

ACH code R54 means “Incorrect account number.” Banks and other financial institutions use this code to indicate that the account number provided in an Automated Clearing House (ACH) transaction needs to be corrected or validated.

When an ACH transaction is initiated, the account number provided must be accurate, or the transaction may be rejected or returned. If the account number is incorrect, the receiving bank typically uses the R54 code to rescind the transaction and return the funds to the originating bank.

If you have initiated an ACH transaction and received an R54 code, you should check the account number and make sure it is correct. You must update the account number and re-initiate the transaction if the account number is incorrect.