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When an ACH File Trips Over a Formatting Error
ACH payments are built to make recurring billing, payroll, and bank-to-bank transfers easy and cost-effective. But behind the scenes, the ACH network runs on strict formatting rules—rules that every payment file must follow to a T.
When a transaction gets returned with ACH Return Code R17, it means the problem wasn’t with the customer’s account or the funds—it was with the structure or formatting of the payment file itself.
Let’s unpack what R17 – File Record Edit Criteria means, why it happens, and how to fix it so your next ACH batch doesn’t bounce.
What Does ACH Return Code R17 Mean?
ACH Return Code R17 stands for:
“File Record Edit Criteria.”
Here’s the official NACHA definition:
R17 – File Record Edit Criteria: A field in the payment file failed to meet required specifications—either due to formatting issues, missing data, or invalid characters.
Translation: something in the file you submitted was formatted incorrectly, broke a rule, or couldn’t be read by the ACH system.
This error doesn’t usually come from the customer’s bank—it typically originates from a problem in how the transaction file was built or submitted.
What Causes an R17 Return?
There are several reasons a transaction might be returned with R17:
A required field was left blank (e.g., no account number or transaction code)
A field included invalid characters (like letters where numbers are expected)
The data didn’t follow NACHA formatting rules (e.g., incorrect line length, extra spaces, or non-standard codes)
There was a misalignment in record type codes or batch headers
The file didn’t match the record layout required by the ACH network
In many cases, this error is caused by a bug or misconfiguration in the software you use to generate ACH files.
How to Fix ACH Return Code R17
R17 issues can seem intimidating at first, but they’re usually technical formatting problems that can be corrected once identified. Here’s how to fix it:
1. Review the Returned Entry
Look at the exact transaction flagged with the R17 code. Your payment processor or bank should provide access to the problematic entry so you can review the fields.
2. Identify the Formatting Error
Common culprits include:
Blank or incomplete fields
Misplaced characters or punctuation
Numeric fields with text input
Improper record length
Invalid SEC codes (Standard Entry Class codes)
3. Correct the Issue in Your Payment System
Update the file, fix the formatting, or adjust how your software generates ACH batches. If you’re not sure what’s wrong, ask your ACH processor to help pinpoint the issue.
4. Validate the New File
Before submitting it again, use a NACHA-compliant validation tool or ask your processor to check the file for formatting compliance.
5. Resubmit the Corrected Transaction
Once you’re confident the file is error-free, resend the payment.
How to Avoid R17 Returns in the Future
The best way to avoid R17 errors is to make sure your ACH files are generated correctly from the start. Here are a few best practices:
Use ACH-compliant software with built-in NACHA formatting
Validate files before submission using a pre-check or sandbox testing tool
Keep your system up to date, especially if you’re using custom-built or legacy tools
Work with a processor who offers file validation and support for custom fields
If you’re unsure about formatting requirements, your payment processor should be able to guide you through what each field in the file should include.
Get ACH Processing With Durango
ACH Return Code R17—“File Record Edit Criteria”—isn’t about customer error or a blocked account. It’s a technical formatting issue in your payment file that caused the system to reject the transaction.
The fix is usually straightforward once you locate the issue, and making sure your ACH file structure meets NACHA standards will help prevent future returns.
At Durango Merchant Services, we help businesses streamline ACH processing, reduce returns, and fix file formatting issues fast. Whether you’re processing hundreds of payments a month or working in a high-risk industry with more complex requirements, we’ve got your back.
