ACH Reason Codes: R31 Permissible Return Entry CCD and CTX Only

Published February 23, 2023

ACH payments are one of the most popular ways businesses pay their suppliers. But how do you know when an amount has been returned due to an error? That’s where ACH reason codes come in. ACH reason codes are used to identify the reason for a payment’s return or reversal, and ACH reason code R31 is one of the most common. In this blog, we’ll take a look at what ACH reason code R31 is, the difference between CCD and CTX, the requirements for acceptable return entry CCD and CTX, what information is required for ACH reason code R31, how to recognize and process ACH reason code R31, the consequences of not complying with ACH reason code R31, the best practices for ACH reason code R31 compliance, and other ACH reason codes you should be aware of.

What is ACH Reason Code R31?
What is the difference between CCD and CTX?
What are the requirements for acceptable return entry CCD and CTX?
What information is required for ACH Reason Code R31?
How to recognize and process ACH Reason Code R31
What are the consequences of not complying with ACH Reason Code R31?
What are the best practices for ACH Reason Code R31 compliance?
What other ACH reason codes should I be aware of?
What services can help with ACH Reason Code R31 compliance?
Conclusion

What is ACH Reason Code R31?

ACH reason code R31 is one of the most common ACH return codes. It is used to identify a return entry that is permissible for CCD and CTX. In other words, it indicates a payment being returned due to an error in the transaction. It can also be used to identify a return due to an incorrect account number, company ID, or trace number.

ACH reason code R31 is not used to identify an unauthorized payment or a payment sent to an incorrect receiver. In those cases, other ACH return codes may be used.

What is the difference between CCD and CTX?

CCD and CTX are two of the most common types of ACH transactions. CCD stands for Corporate Credit and Debit and is used for business-to-business transactions. CTX stands for Corporate Trade Exchange and is used for business-to-consumer transactions.

The main difference between CCD and CTX is that CCD is used for more significant transactions, such as payroll and invoices, while CTX is used for smaller transactions, such as refunds and payments for goods or services.

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What are the requirements for acceptable return entry CCD and CTX?

For an ACH payment to be returned as acceptable return entry CCD or CTX, the payment must meet specific requirements. First, the payment must be sent using either CCD or CTX. Second, the payment must include the correct account number, company ID, and trace number. Third, the payment must be sent to the correct receiver. And fourth, the payment must be sent with the right amount.

If any of these requirements are not met, the payment will not be returned as acceptable return entry CCD or CTX. It will instead be returned as an unauthorized payment or a payment sent to an incorrect receiver.

What information is required for ACH Reason Code R31?

In order to process an ACH payment that has been returned due to ACH reason code R31, certain information is required. This information includes the date the payment was returned, the sender’s account number, the sender’s company ID, the sender, the trace number of the sender, the amount of the payment, and the reason for the return.

It is important to note that this information must be accurate in order for the payment to be returned as permissible return entry CCD or CTX. If any of this information is incorrect, the payment will not be returned as permissible return entry CCD or CTX and will be returned as an unauthorized payment or a payment sent to an incorrect receiver.

How to recognize and process ACH Reason Code R31

When processing ACH payments, it is important to be able to recognize and process ACH reason code R31. To do this, first check the ACH return code. If the code is R31, the payment is permissible for CCD and CTX.

Next, check the information associated with the payment. This includes the date the payment was returned, the sender’s account number, the sender’s company ID, the sender, the trace number of the sender, the amount of the payment, and the reason for the return. If any of this information is incorrect, the payment will not be returned as permissible return entry CCD or CTX and will be returned as an unauthorized payment or a payment sent to an incorrect receiver.

Once the information is verified, the payment can be processed according to the return instructions provided. For example, if the payment was returned due to an incorrect account number, the payment can be re-sent with the correct account number.

What are the consequences of not complying with ACH Reason Code R31?

Not complying with ACH reason code R31 can have serious consequences, including an inability to process payments, an increase in processing costs, and potential fines and penalties.

In addition, not complying with ACH reason code R31 can cause delays in payment processing, which can lead to customer dissatisfaction and lost of business.

What are the best practices for ACH Reason Code R31 compliance?

Some best practices should be followed to ensure compliance with ACH reason code R31. First, always check the information associated with the payment, such as the date the payment was returned, the sender’s account number, the sender’s company ID, the sender, the trace number of the sender, the amount of the payment, and the reason for the return.

Second, send payments with the correct account number, company ID, and trace number. And third, always use CCD or CTX to send payments.

What other ACH reason codes should I be aware of?

In addition to ACH reason code R31, you should be aware of several other ACH return codes. These include ACH return codes R01 (insufficient funds), R02 (account frozen), and R03 (no account/unable to locate account). You should also be aware of ACH return codes R10 (customer advises not authorized), R20 (invalid company identification number), and R22 (invalid individual identification number).

What services can help with ACH Reason Code R31 compliance?

There are several services that can help with ACH reason code R31 compliance. These services can help you verify the information associated with a payment and ensure that payments are sent with the correct account number, company ID, and trace number.

In addition, these services can help you recognize and process ACH reason code R31 and provide guidance on best practices for ACH reason code R31 compliance.

Conclusion

ACH reason code R31 is one of the most common ACH return codes and is used to identify a return entry that is permissible for CCD and CTX. It is important to understand what ACH reason code R31 is, the difference between CCD and CTX, the requirements for permissible return entry CCD and CTX, what information is required for ACH reason code R31, how to recognize and process ACH reason code R31, the consequences of not complying with ACH reason code R31, the best practices for ACH reason code R31 compliance, and other ACH reason codes you should be aware of.

By understanding ACH reason code R31 and following best practices for compliance, you can ensure that your payments are processed quickly and efficiently. And with the help of services specializing in ACH compliance, you can ensure that your payments comply with ACH reason code R31.