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When an ACH Payment Hits a Heartbreaking Reality
ACH payments are an efficient and reliable way to transfer funds between accounts, whether you’re running payroll, issuing refunds, or collecting on subscriptions. But every once in a while, an ACH transaction fails—not because of a typo or a processing error, but because the account holder has passed away.
That’s what ACH Return Code R15 is all about. It’s a sensitive and important code that signals a major change in the customer’s life—and in how you should handle their account moving forward.
In this article, we’ll walk through what ACH Return Code R15 means, why it happens, and how to respond respectfully and professionally.
What Does ACH Return Code R15 Mean?
ACH Return Code R15 stands for:
“Beneficiary or Account Holder Deceased.”
NACHA defines it as follows:
R15 – Beneficiary or Account Holder Deceased: The account holder or the person intended to receive the funds has passed away, and the receiving bank cannot process the transaction.
This code may come from the bank that holds the account (the RDFI) once they’ve been officially notified of the death. It’s a signal that no more funds should be sent to or withdrawn from the account.
This can apply to individual bank accounts or to representative payee arrangements where the named account holder is no longer living.
When Does R15 Show Up?
You’ll most often see an R15 return in situations such as:
A recurring ACH payment (like a subscription or benefit disbursement) is still scheduled after the account holder has passed away
A customer passed unexpectedly and their family or estate has informed the bank
The bank has confirmed the account should be frozen or closed following a death
It’s worth noting that the R15 code typically applies to credit entries—payments being deposited into the account of a deceased person. If a debit entry is involved and similar circumstances arise, the bank may use a different code or handle it case-by-case.
How to Handle ACH Return Code R15
Dealing with an R15 return means taking action, but also showing care and professionalism. Here’s what to do:
1. Do Not Attempt to Resubmit the Payment
Once you’ve received an R15, the account is considered closed for the purposes of ACH transfers. Trying to resubmit the transaction could result in further returns and may complicate estate matters.
2. Pause Future Billing or Transfers
If the payment was part of a recurring billing plan, pause it immediately. If it was a one-time transaction, take note that the account is no longer valid.
3. Reach Out to a Secondary Contact (If Available)
If your customer records include a power of attorney, representative payee, or emergency contact, this may be the time to get in touch. Be sensitive in your communication and avoid assumptions.
4. Work With the Executor or Estate
In many cases, the estate will settle any final payments due or provide updated information for future communications. Don’t request payment until you’ve been contacted by or have confirmed who the legal representative is.
5. Document the Return and Flag the Account
Update your system to reflect the R15 return and make sure no further billing attempts are made on that account. Keeping accurate records can help you stay compliant and avoid uncomfortable missteps.
Preventing Issues Related to R15
You can’t prevent a return due to someone’s passing—but you can handle the situation with care and reduce the chances of repeated errors:
Avoid automated retries when an R15 return is received
Mark deceased accounts as inactive or closed in your system
Ensure recurring billing software pauses transactions after a return code is logged
Train your support team on how to handle these situations respectfully
For businesses working with retirement funds, benefits, or long-term customer relationships, it’s especially important to have a protocol in place for handling these returns.
Get ACH Processing With Durango
ACH Return Code R15—“Beneficiary or Account Holder Deceased”—isn’t just a technical message. It’s a reminder that there’s a real life (and a loss) behind every transaction. The right response is one that combines clear action with respect and empathy.
At Durango Merchant Services, we help businesses manage every aspect of ACH processing—including how to handle sensitive return codes like R15. Whether you’re navigating subscription billing, benefit disbursements, or high-risk merchant accounts, we’ll help you build systems that are compliant, thoughtful, and effective.
