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When a Return That Should Have Been Accepted Is Rejected
In the ACH system, there are clear rules about when and how a payment can be returned. Sometimes, a return is allowed under the rules—but the receiving bank doesn’t accept it properly. When that happens, the system flags the issue with ACH Return Code R70.
Let’s walk through what R70 – Permissible Return Entry Not Accepted means, why it happens, and what steps you can take to handle it.
What Does ACH Return Code R70 Mean?
ACH Return Code R70 stands for:
“Permissible Return Entry Not Accepted.”
Here’s NACHA’s official definition:
R70 – Permissible Return Entry Not Accepted: The Receiving Depository Financial Institution (RDFI) did not accept a return entry that it was required or permitted to accept under ACH rules.
In simpler terms: a return that was valid and allowed wasn’t properly handled by the receiving bank, and the system rejected the situation for not following the rules.
Why Would an R70ACH Return Happen?
Several situations can trigger an R70 return:
The RDFI incorrectly refused a valid return due to internal bank errors
The RDFI’s systems were not properly set up to process that specific type of return
The RDFI misunderstood ACH rules and treated a permissible return as invalid
Timing or processing errors inside the receiving bank delayed or blocked the return
An R70 isn’t about the original transaction being wrong—it’s about the receiving bank mishandling a legitimate return.
How to Handle ACH Return Code R70
If you encounter an R70 return, here’s what to do:
1. Review the Return
Make sure the original return was valid and permissible under ACH rules. Confirm that your records are complete and correct.
2. Contact Your ACH Provider or Bank
Let your ACH processor or your ODFI (Originating Depository Financial Institution) know that the R70 occurred. They may need to coordinate directly with the RDFI to resolve the issue.
3. Request RDFI Correction
The RDFI may be required to accept the return properly once the error is pointed out. Your ODFI and the RDFI will typically work together to fix the issue.
4. Document Everything
Keep thorough records of the return, the R70 notification, and all communications related to the error. Good documentation helps if the issue escalates or requires formal dispute resolution.
How to Prevent R70 ACH Returns in the Future
Because R70 errors are usually caused by the RDFI and not by the business initiating the transaction, there’s only so much you can control. That said, you can help protect your business by:
Working with an experienced ACH provider who monitors and escalates return errors quickly
Keeping your ACH return records organized to make it easier to show the validity of returns
Responding quickly to any ACH return irregularities to limit disruptions
Training your internal team on what types of returns are allowed and the documentation needed for each
Speed and organization can help fix R70 errors faster when they happen.
Get ACH Payment Processing with Durango merchant Services
ACH Return Code R70—“Permissible Return Entry Not Accepted”—means a return that should have been processed wasn’t accepted by the receiving bank. While it’s not caused by your business directly, it’s important to act quickly to get the issue corrected and protect your payment operations.
At Durango Merchant Services, we help businesses navigate ACH returns, disputes, and payment processing challenges with expert support and efficient solutions. Whether you’re managing occasional returns or large volumes of transactions, we’re here to help keep your systems running smoothly.
