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When a Business Rejects Your ACH Debit
ACH debits are a convenient way to collect payments from customers, including other businesses. But if a corporate customer didn’t authorize the payment—or claims it was sent in error—they can notify their bank to reject the transaction. When that happens, you’ll likely see ACH Return Code R29.
This return code means the payment was not approved by the business account holder. It’s important to understand what caused it, how to resolve it professionally, and how to prevent it from happening again—especially if you work with other companies through CCD (Corporate Credit or Debit) entries.
What Does ACH Return Code R29 Mean?
ACH Return Code R29 stands for:
“Corporate Customer Advises Not Authorized.”
According to NACHA, the official definition is:
R29 – Corporate Customer Advises Not Authorized: The corporate account holder has informed their bank that the debit was not authorized.
In other words: the business whose account you attempted to debit said they never agreed to the charge—or they’ve revoked their authorization.
This is specific to business accounts, and usually comes up in CCD (Corporate Credit or Debit) transactions—not consumer ones.
Common Reasons for R29 Returns
Here are some typical situations where a business might reject an ACH debit:
No authorization was ever provided for recurring or one-time debits
Authorization was revoked and your system still processed the payment
The amount was different than agreed upon
The timing was off, and the charge didn’t align with the agreement
The company didn’t recognize your business name on their bank statement
There’s an internal error on their side, and they reversed the charge by mistake
Whatever the reason, an R29 return should be taken seriously—it can lead to compliance issues if not handled properly.
How to Handle ACH Return Code R29
Here’s what to do when you receive an R29 return:
1. Stop Future Debits Immediately
Do not attempt to charge the business account again without resolving the authorization issue. Reprocessing the same debit without permission can put your ACH privileges at risk.
2. Contact the Business Directly
Reach out to the company and ask for clarification. Was the debit unauthorized? Did they forget about the agreement? Were the payment details unclear? Be courteous and focused on resolving the issue.
3. Review Your Original Authorization
Make sure you have a clear and verifiable authorization on file. For CCD transactions, written authorization is often recommended, especially for recurring payments.
4. Get New Authorization If Needed
If the business is still a client, request a new authorization form or agreement—making sure the amount, frequency, and timing of the debit are clearly stated.
5. Keep Documentation
Maintain records of all authorizations and communications related to the transaction. This helps protect your business in the event of disputes or future returns.
How to Avoid R29 Returns in the Future
R29 returns can usually be avoided with clear agreements and solid communication. Here’s how:
Always get written authorization for debiting business accounts
Use CCD entries properly, with matching account types and SEC codes
Send payment reminders before debits, especially for larger invoices
Use a recognizable business name on ACH entries so it appears clearly on bank statements
Clearly document the terms of the agreement—amount, timing, frequency, and contact info
If you’re working with multiple corporate clients, a well-organized ACH authorization process is a must.
Get ACH Processing With Durango
ACH Return Code R29—“Corporate Customer Advises Not Authorized”—means the business you attempted to debit either didn’t approve the transaction or had previously withdrawn consent. It’s not just a technical error—it’s a red flag that you need to pause and address the situation.
At Durango Merchant Services, we specialize in helping businesses manage ACH payments, reduce return codes, and handle corporate transactions with confidence. If your business regularly deals with other companies, we’ll help you build a reliable, compliant payment system that earns trust and avoids surprises.
