Understanding the Language of ACH Returns
If your business accepts payments through the ACH network, you’ve probably seen return codes from time to time. They’re the system’s way of letting you know why a payment didn’t go through. Each one starts with an “R” followed by a number—and if you’re here, you’re probably dealing with R06.
ACH return codes can seem like alphabet soup at first, but once you know what each one means, they become a helpful tool instead of a headache.
Let’s take a closer look at ACH Return Code R06, what it means, and what to do if you see it.
Quick Recap: What Is ACH?
ACH stands for Automated Clearing House, the U.S. network that moves money electronically between banks. It’s commonly used for direct deposits, automatic bill payments, and business-to-business transfers.
ACH is slower than debit or credit card payments but much more affordable—especially for recurring transactions or high-ticket sales. It’s a reliable system, but when things go sideways, return codes like R06 help explain what went wrong.
What Does ACH Return Code R06 Mean?
ACH Return Code R06 means:
“Returned per ODFI’s Request”
Let’s break that down.
ODFI stands for Originating Depository Financial Institution—this is the bank or processor that originally sent the payment.
If the ODFI requests a return, it means the original bank that initiated the transaction is asking for the payment to be pulled back—for one reason or another.
According to the official NACHA definition:
R06 – Returned per ODFI’s Request: The RDFI (Receiving Depository Financial Institution) is returning the entry at the request of the ODFI. This code should only be used when the ODFI has contacted the RDFI and both parties have agreed to return the entry.
So, this return isn’t caused by a customer or account issue—it’s initiated by the sending bank and agreed to by the receiving bank.
Why Would an ODFI Request a Return?
There are a few scenarios where this might happen:
An error in the original transaction (e.g., duplicate payment or wrong amount)
The wrong account was debited or credited
Fraud was detected after the transaction was initiated
The customer or merchant requested help canceling the transaction quickly
Compliance concerns or unusual account activity
R06 is kind of a “bank-to-bank” return code. It’s not tied to customer authorization or account info—it’s more about communication between the institutions involved in the transfer.
How to Handle ACH Return Code R06
1. Talk to Your Payment Processor or Bank
Since R06 returns are triggered by your own bank or processor (the ODFI), your first move should be to reach out to them. They can explain why the request was made and what you should do next.
2. Check for Duplicate or Incorrect Transactions
Update the settings in your payment system or gatewaIf a return was requested due to an input mistake—like the wrong amount or duplicate payment—you may need to reissue the payment correctly. Your processor can guide you on how to proceed safely.y to reflect the right code for the type of account you’re working with. Many ACH platforms let you configure this on a per-customer basis.
3. Review Any Related Disputes or Concerns
Sometimes an R06 is linked to a dispute or fraud investigation. Make sure there’s no underlying issue that needs to be addressed with your customer or internally.
4. Document the Communication
Because R06 returns involve communication between banks, keep records of any explanations, instructions, or confirmations from your processor. This helps protect you in case there’s follow-up needed later.
Can I Prevent R06 Returns?
Not always. Since this code comes from your bank, it’s not usually tied to something you’ve done wrong—but here are a few best practices to avoid needing one:
Double-check transaction amounts and account details before submitting ACH payments
Avoid duplicate entries by using unique identifiers for each transaction
Keep a clean audit trail for high-value payments in case a reversal is needed
Use a payment processor that supports strong fraud monitoring and alerts
Get ACH Processing With Durango
ACH Return Code R06—“Returned per ODFI’s Request”—isn’t one of the more common return codes, but when it shows up, it’s important to know how to respond. It usually means your bank initiated a reversal to fix a problem with the original transaction.
At Durango Merchant Services, we support businesses in navigating all aspects of ACH processing—including tricky return codes like R06. Whether you’re dealing with unexpected reversals or need a payment partner who can help you reduce your risk, we’re here to help.
