ACH Return Code R01 indicates that the account does not have sufficient funds available to cover the transaction amount. This is one of the most common ACH return codes.
What causes R01?
The R01 return code occurs when:
- The account balance is lower than the transaction amount
- Available funds (after holds) are insufficient
- The account has been overdrawn
How to resolve R01
- . **Contact the customer** - Inform them about the insufficient funds
- . **Wait and retry** - The customer may need time to deposit funds
- . **Set up payment reminders** - Help customers plan for recurring payments
- . **Consider alternative payment methods** - Offer credit card or other options
Prevention tips
- Verify account balances before initiating large transactions
- Send payment reminders before processing
- Implement smart retry logic with appropriate timing
