ACH Return Code R23: Credit Entry Refused by Receiver

Account Type: Consumer and Non-Consumer

Time Frame for Return: Upon receipt of refusal

SEC Codes: All

ISO Code: NARR (Narrative)

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 R23

Code R23 means the receiver refused to accept a credit entry. This return is initiated by the Receiving Depository Financial Institution (RDFI) after the receiver notifies their bank that they do not want the funds credited to their account. This may have occurred because:

• The receiver did not recognize or want the payment. The credit was unexpected, sent in error, or not associated with a known transaction.
• The credit was for an incorrect amount or purpose. The receiver identified a discrepancy and chose to refuse the funds rather than accept and resolve it later.
• The receiver requested the credit be returned. The account holder explicitly instructed their bank to refuse the credit entry.

Sending ACH Payments with Slash

You can send domestic or international ACH payments using Slash by following these steps:

1. Navigate to the Payments dashboard and click Transfer Funds in the top-right corner.
2. Select a recipient using saved contact and banking information, or add a new recipient by entering their contact and bank details.
3. 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).
4. 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.
5. Review the recipient's bank name, account number, and ACH routing number to ensure the payment details are correct.
6. 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.