A Crash Course on QuickBooks ACH Reject Codes

If you use QuickBooks Payments to receive Automated Clearing House (ACH) payments from your
business’s customers, you should familiarize yourself with reject codes. ACH payments are essentially
direct transfers. Customers can pay their invoices by sending money from their bank accounts directly to
your business’s bank account. If an ACH payment fails, though, you’ll receive an email containing an ACH
reject code.

The Purpose of ACH Reject Codes

ACH reject codes are designed to notify businesses about a failed ACH payment. Assuming an ACH
payment is successful, you won’t encounter any reject codes. Rather, QuickBooks only uses them in
instances of failed ACH payments.

There are dozens of reject codes. Each reject code consists of a unique three-digit code, beginning with
the letter R. When a customer’s ACH payment fails, QuickBooks will send you an email. This email will
contain the reject code indicating why the reason for the failure.


One of the most common reject codes is R01. It indicates an insufficient balance. If the customer doesn’t
have enough money in his or her bank account, your bank will reject the ACH payment. And QuickBooks
will send you an email containing the R01 reject code.


The R02 reject code indicates a closed account. Customers may close their bank accounts. If the
customer’s bank account previously existed but is now closed, your bank will reject the ACH payment.
For rejections involving a now-closed bank account such as this, QuickBooks will notify you with an R02
reject code.


While not as common as R01 or R02 reject codes, some ACH payments may trigger an R19 reject code.
The R19 reject code indicates an erroneous format. Customers who don’t use the correct format when
creating the ACH payment may have their payment rejected by your bank. For rejections associated with
an erroneous format, you’ll receive an email containing an R19 reject code.


The R09 reject code indicates the customer has a sufficient total balance for the ACH payment, but the
collectible balance is insufficient. The customer’s bank can’t collect the necessary amount for the ACH
payment. Therefore, QuickBooks will send you an email containing the R09 reject code.

In Conclusion

If your bank has rejected a customer’s ACH payment, you should check your inbox. As long as you use
QuickBooks Payments, you’ll receive an email containing a reject code. Reject codes consist of an
alphanumeric string indicating the reason for the payment failure.

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