ACH Reason Codes: R37 Source Document Presented for Payment

Navigating the world of credit card processing can take time and effort for businesses. One of the most common obstacles companies face is decline codes, which can indicate a variety of issues. Reason Code R37: Source Document Presented for Payment is one of the most common reason codes. In this blog, we’ll be unpacking what this decline code means, what causes it, how to avoid it, and how to address it when it occurs.

Table of contents

• What is Reason Code R37: Source Document Presented for Payment?
• Causes of Reason Code R37
• How to Avoid Reason Code R37
• What to do when Reason Code R37 appears
• What is the transaction cycle?
• What is a source document?
• How to properly present a source document
• Common source document anomalies
• Best practices for presenting source documents
• Conclusion

What is Reason Code R37: Source Document Presented for Payment?

Reason Code R37: Source Document Presented for Payment is a decline code issued when the source document presented to the card issuer is incomplete or invalid. This code is most commonly associated with Visa, Mastercard, and Discover. The source document can be a sales receipt, an invoice, or any other proof of purchase.

When a transaction is declined with Reason Code R37, it usually indicates a problem with the source document. This could be a problem with the document’s formatting, the information on the document, or the quality of the document. In some cases, it can also indicate that the document is fraudulent or has been altered.

Causes of Reason Code R37

There are several potential causes for Reason Code R37. The most common cause is an incomplete or invalid source document. This could include a document missing key information, such as the customer’s name or the purchase amount. It could also include a document that has been altered or is fraudulent.

Another common cause of Reason Code R37 is a formatting issue. Documents should be appropriately formatted to be accepted by the card issuer. The document may be rejected if there are any typos, incorrect information, or other formatting issues.

Finally, the quality of the document can also be a cause of Reason Code R37. Documents should be of sufficient quality to be accepted by the card issuer. It may be rejected if the document is blurry, smudged, or otherwise of poor quality.

How to Avoid Reason Code R37

The best way to avoid Reason Code R37 is to ensure the source document is complete and accurate. This means double-checking the document for typos or other errors before submitting it. It’s also important to make sure the document is not fraudulent or has been altered.

It’s also important to make sure that the document is properly formatted. This means ensuring that all the necessary information is included, such as the customer’s name, the purchase amount, and any other required information.

Finally, make sure that the document is of sufficient quality. This means using a printer or scanner that produces clear, legible copies.

What to do when Reason Code R37 appears

If Reason Code R37 appears, it’s important to take action quickly. The most important thing to do is to ensure that the source document is complete and accurate. The document should be corrected and resubmitted if it is incomplete or invalid.

If the document is fraudulent or has been altered, it should not be resubmitted. Instead, contact the card issuer and explain the situation. They may be able to provide further guidance or assistance.

It’s also important to ensure that the document is properly formatted. This means checking for typos, incorrect information, and other formatting issues. If any of these issues are present, they should be corrected, and the document should be resubmitted.

Finally, make sure that the document is of sufficient quality. If the document is blurry, smudged, or otherwise of poor quality, it should be re-scanned, re-printed, and resubmitted.

What is the transaction cycle?

The transaction cycle is the process that occurs when a customer purchases with a credit or debit card. This process involves several steps, including authorization, settlement, and funding.

The first step in the transaction cycle is an authorization. This is when the card issuer verifies that the card is valid and that the customer has sufficient funds to cover the purchase.

The second step is a settlement. This is when the card issuer communicates with the merchant’s payment processor to transfer the funds from the customer’s account to the merchant’s.

The final step is funding. This is when the funds from the customer’s account are transferred to the merchant’s account.

What is a source document?

A source document is a form of proof of purchase used to verify a transaction. This can be a sales receipt, an invoice, or any other document that shows that a purchase has been made. The card issuer typically requires a source document to authorize a transaction.

How to properly present a source document

In order to properly present a source document to the card issuer, it is important to make sure that the document is complete, accurate, properly formatted, and of sufficient quality.

The document should include all the necessary information, such as the customer’s name, the purchase amount, and any other required information. It should also be free from typos and other formatting errors.

Finally, the document should be of sufficient quality. This means using a printer or scanner that produces clear, legible documents.

Common source document anomalies

When submitting a source document to the card issuer, it’s important to look for any anomalies that may indicate a problem. Common anomalies include typos, incorrect information, and formatting errors. It’s also important to make sure that the document is not fraudulent or has been altered.

Best practices for presenting source documents

The best way to ensure the card issuer accepts a source document is to follow a few best practices. This includes double-checking the document for any typos or other errors before submitting it, ensuring the document is not fraudulent or altered, and ensuring that it is properly formatted.

It’s also important to make sure that the document is of sufficient quality. This means using a printer or scanner that produces clear, legible documents.

Conclusion

Reason Code R37: Source Document Presented for Payment is a common decline code that can indicate various issues. The most common cause is an incomplete or invalid source document, but it can also be caused by formatting issues or a document of poor quality. The best way to avoid Reason Code R37 is to make sure the source document is complete and accurate, properly formatted, and of sufficient quality. If Reason Code R37 appears, it’s essential to take action quickly to ensure that the source document is complete, accurate, properly formatted, and of sufficient quality.