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When Your ACH Transaction Trips on Supporting Data
ACH payments don’t just move money—they can also carry important information along with them. That’s where addenda records come in. These optional data fields often include invoice numbers, payment descriptions, or tax details. But if the addenda are formatted incorrectly or conflict with the type of transaction you’re sending, the payment can bounce back.
That’s when you’ll see ACH Return Code R25, which tells you there’s a problem with the addenda portion of your payment.
Let’s walk through what R25 – Addenda Error means, what causes it, and how to fix it so your transactions can be completed successfully.
What Does ACH Return Code R25 Mean?
ACH Return Code R25 stands for:
“Addenda Error.”
Here’s the official NACHA definition:
R25 – Addenda Error: The payment entry contains addenda information that is invalid, not permitted with that type of transaction, or incorrectly formatted.
In short: your transaction included supporting data that the ACH network couldn’t accept due to formatting or rule violations.
What Are Addenda Records in ACH?
Addenda records are optional information fields that are sent along with certain ACH transactions. They’re commonly used in:
CCD (Corporate Credit or Debit) entries
CTX (Corporate Trade Exchange) entries
IAT (International ACH Transfers)
These records might contain:
Invoice numbers
Remittance details
Tax IDs
Payment breakdowns
Reference codes or customer info
They’re incredibly useful for corporate payments—but if they’re entered incorrectly, the entire transaction can fail.
Why Would an R25 Return Happen?
Here are some common reasons an ACH transaction might return with R25:
Invalid characters or symbols in the addenda field
Incorrect formatting, such as missing required segments
Using addenda with a transaction type that doesn’t allow it (e.g., PPD entries for consumer payments)
Including more addenda records than permitted
Mismatched information between the payment and the addenda record
This is most often a file construction issue, meaning the software or system creating the ACH file didn’t build the entry according to NACHA specs.
How to Fix ACH Return Code R25
If you’ve received an R25 return, here’s how to resolve it:
1. Review the Addenda Record
Check the content of the addenda attached to the transaction. Look for formatting issues, unsupported characters, or missing fields. If you’re using CTX, make sure it follows EDI (Electronic Data Interchange) standards.
2. Verify the Entry Class Code
Make sure the SEC code (e.g., CCD, CTX, PPD) used in the transaction matches the type of payment you’re trying to send. Addenda are only supported for certain SEC codes.
3. Validate with Your Processor or Software Provider
Your payment processor or ACH software provider may be able to review the ACH file and help you identify exactly where the error occurred.
4. Correct and Resubmit the Payment
Once the addenda are fixed or removed (if not needed), reprocess the transaction.
How to Prevent R25 Returns in the Future
To avoid R25 addenda errors, consider the following tips:
Use ACH software that validates addenda formatting automatically
Only include addenda where appropriate, based on the SEC code
Train your team on how and when to use addenda fields
Follow NACHA formatting guidelines, especially for corporate transactions
Run test batches when using new systems or formats
If you frequently send detailed remittance data, investing in ACH tools that handle addenda properly will save you time and reduce return rates.
Get ACH Processing With Durango
ACH Return Code R24—“Duplicate Entry”—means your payment was flagged because it was too similar to one you already sent. While it’s not a serious issue, it can cause confusion for your customer or vendor if not addressed promptly.
At Durango Merchant Services, we help businesses avoid common ACH pitfalls like duplicate entries by providing tools, training, and payment systems that are designed to minimize returns—especially in high-risk or high-volume environments.
