Account Type: Consumer and Non-Consumer
Time Frame for Return: 2 Banking Days
SEC Codes: All
ISO Code: AM04
What is an ACH Return Code?
An ACH return code is a standardized code used to explain why an Automated Clearing House (ACH) transaction was returned by the receiving bank.
Codes are issued by the Receiving Depository Financial Institution (RDFI) and maintained by Nacha, the organization that governs the ACH Network. Certain codes may apply to consumer accounts, non-consumer (business) accounts, or both. These codes help banks, payment processors, and originators understand what went wrong during an ACH transaction so they can determine the appropriate next steps, such as retrying the payment, correcting information, or contacting the customer.
Why you’re seeing ACH Return Code R01
Code R01 means that the available cash reserve balance is not sufficient to cover the dollar value of the debit entry. This may have occurred because:
- The account balance was too low at the time of processing. For example, a $2,000 ACH debit was submitted, but only $1,500 was available in the account when the payment was processed.
- Pending transactions reduced the available balance. Recent card purchases or ACH debits were still pending, lowering the available balance even though the ledger balance appeared sufficient.
- Funds were not yet fully collected or available. A recent deposit had not finished clearing, so those funds were unavailable when the ACH debit attempted to settle.
How to Address ACH Return Code R01
Add funds to your account or contact your bank or payment provider to arrange an alternative payment method. You may be able to retry the payment once funds are available.
Sending ACH Payments with Slash
You can send domestic or international ACH payments using Slash by following these steps:
- Navigate to the Payments dashboard and click Transfer Funds in the top-right corner.
- Select a recipient using saved contact and banking information, or add a new recipient by entering their contact and bank details.
- Choose the Slash account you want to use as the payment source, select ACH Transfer as the payment method, choose the destination bank account, and enter the payment amount (in USD).
- Optionally, send the recipient an email confirmation with a payment description. You can also add a memo with internal notes that are visible only to you and other Slash account administrators.
- Review the recipient’s bank name, account number, and ACH routing number to ensure the payment details are correct.
- Once all information is confirmed, click Send Payment.
Slash offers 24/7 support by phone and email to help resolve any issues with sending payments. You can also improve how you manage ACH transfers by scheduling recurring ACH payments, receiving low-balance notifications, and tracking returned payments alongside other transactions. With Slash, you can view all account balances, ACH activity, and transfers in one centralized dashboard.
