ACH code R78 is a return code that indicates that the receiving bank has returned a payment because the individual name or address associated with the bank account does not match the information provided in the ACH transaction.
This can occur for various reasons, such as a misspelled name or incorrect address information. It can also happen if the bank account belongs to a business or organization and the ACH transaction was submitted using an individual’s name instead of the business name.
When an ACH payment is returned with the R78 code, the originating bank usually must correct the name or address information and resubmit the payment. Sometimes, the receiving bank may require additional documentation to verify the account holder’s identity before accepting the payment.