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When a Payment Gets Rejected Because of ID Mismatch
ACH payments are a convenient way to move money from one account to another—whether you’re running payroll, collecting payments, or paying vendors. But when information doesn’t match up between your business and the bank’s records, a transaction can get rejected.
ACH Return Code R22 is one of those errors that can leave you scratching your head. It’s tied to something called the Individual ID Number, which plays a key role in certain types of ACH transactions. If this number is missing or incorrect, the payment won’t go through.
Let’s break down what R22 – Invalid Individual ID Number means, why it shows up, and how you can fix it quickly.
What Does ACH Return Code R22 Mean?
ACH Return Code R22 stands for:
“Invalid Individual ID Number.”
Here’s how NACHA officially defines it:
R22 – Invalid Individual ID Number: The ID number used in the entry is not valid. It may be missing, incorrectly formatted, or not recognized by the receiving financial institution.
This return typically shows up when the receiver of the ACH payment is a business or individual that requires an identifying number—and the number you provided doesn’t match what the receiving bank has on file.
When Does R22 Usually Occur?
This return code is most commonly associated with corporate payments or employee payroll entries where the individual or company ID is required to direct the funds properly.
R22 can occur when:
The employee ID, vendor number, or customer reference number is incorrect
The ID field was left blank or entered in the wrong format
The account is linked to a government agency or special entity that requires an exact match
You’re sending a CTX or CCD entry (corporate payments) with incomplete or invalid addenda data
The receiver has bank filters in place that require precise ID numbers to accept ACH entries
How to Fix ACH Return Code R22
Here’s how to address an R22 return and keep things moving:
1. Review the Individual ID Field
Go back to the original ACH file or entry and check what was entered in the “Individual ID Number” field. Is it blank? Is it mistyped or formatted incorrectly?
2. Contact the Receiver (If Appropriate)
If you’re sending payments to a vendor, contractor, or employee, ask them to verify the identifying number they have registered with their bank for ACH transactions.
3. Update the ID Number
Once you’ve confirmed the correct ID, update your system to reflect the accurate information.
4. Validate Your ACH Software or Payment Platform
If you’re using a payroll or billing system that auto-fills this field, make sure it’s pulling the correct data from your records.
5. Resubmit the Payment
After correcting the issue, resubmit the transaction with the valid individual ID number.
Tips to Avoid R22 Returns in the Future
To reduce the chances of R22 errors, keep these best practices in mind:
Always confirm account and ID info when onboarding new employees, vendors, or customers
Avoid leaving required ID fields blank in your ACH submission
Use ACH software that flags missing or incorrectly formatted individual ID numbers
Check with your processor for formatting guidance if you’re unsure what’s required
Since R22 is often a data entry or formatting issue, a little extra attention upfront can prevent the hassle of returned payments later.
Get ACH Processing With Durango
ACH Return Code R22—“Invalid Individual ID Number”—means the unique identifier provided for the person or business receiving the funds didn’t match what their bank expects. It’s not a fraud flag or a bounced account—just a mismatch in data that needs correcting.
At Durango Merchant Services, we help businesses fine-tune their ACH systems to reduce errors, streamline billing, and stay compliant. Whether you’re running payroll or managing recurring corporate payments, we’ve got tools and support to make the process easier.
