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When a Business Disputes an ACH Debit the Right Way
ACH payments between businesses are governed by a specific set of rules—especially when it comes to corporate entries like CCD (Corporate Credit or Debit) and CTX (Corporate Trade Exchange) transactions. While most of these payments go through without issue, sometimes the receiving business wants to dispute the debit.
That’s where ACH Return Code R31 comes in. It’s a signal that the transaction is being returned within the allowed timeframe for corporate accounts—and that the return is permitted under NACHA guidelines.
Let’s walk through what R31 – Permissible Return Entry (CCD and CTX Only) means, what situations trigger it, and how your business should respond.
What Does ACH Return Code R31 Mean?
ACH Return Code R31 stands for:
“Permissible Return Entry (CCD and CTX Only).”
Here’s NACHA’s official definition:
R31 – Permissible Return Entry: The Receiving Depository Financial Institution (RDFI) has been notified by its corporate customer that a CCD or CTX debit entry was not authorized, and the return is being made outside the standard two-day return window but within the permissible return timeframe for corporate entries.
Translation: a business customer told their bank that a debit to their account wasn’t authorized, and the bank is returning the transaction—legally and in accordance with NACHA rules, even though it’s after the typical return deadline for consumer accounts.
Key Differences Between Consumer and Corporate ACH Returns
Consumer (PPD) entries must typically be returned within 60 days if unauthorized.
Corporate (CCD/CTX) entries have a shorter return window—usually within 2 banking days unless the return is deemed permissible under special circumstances.
R31 is a grace window for corporate entries—where the RDFI can still return the transaction if the business account holder raises a valid concern within the allowed (but tighter) timeframe.
Why Would an R31 Return Happen?
This return usually indicates a dispute raised by a corporate account holder for one of the following reasons:
They didn’t authorize the debit
The debit was for the wrong amount
The payment violated the terms of the original agreement
The business revoked authorization, and the debit went through anyway
There was confusion or miscommunication about the transaction
In all cases, the RDFI is acting on behalf of its business customer and returning the debit within NACHA’s guidelines.
How to Handle ACH Return Code R31
When you receive an R31 return, here’s how to handle it properly:
1. Do Not Resubmit the Transaction
Since the business customer advised their bank to reject the debit, you should not attempt to debit their account again without updated authorization.
2. Reach Out to the Company
Contact your customer or vendor and ask for clarification. Was the payment unexpected? Did the amount or terms differ from what they agreed to?
3. Review Your Authorization Records
For corporate ACH debits, written or clearly documented authorization is critical. Double-check that you had permission to debit the account under the agreed terms.
4. Obtain New Authorization (If Applicable)
If the customer wants to continue doing business, have them re-authorize the payment with updated terms and make sure all parties are clear on the timing, amount, and reason for future debits.
5. Document Everything
Keep a clear record of the return, customer communication, and updated authorization to help protect your business and maintain compliance.
How to Avoid R31 Returns in the Future
A few best practices can help prevent R31 return codes and maintain strong relationships with corporate clients:
Always get written authorization for CCD and CTX debits
Use consistent transaction descriptions to avoid confusion on bank statements
Notify business clients in advance of scheduled debits—especially large or first-time payments
Respond quickly if a client disputes a payment or asks for clarification
Ensure your team understands the rules around CCD/CTX processing
When businesses know what to expect and see clear, accurate billing, they’re far less likely to dispute a charge.
Get ACH Processing With Durango
ACH Return Code R31—“Permissible Return Entry (CCD and CTX Only)”—means a business customer has requested a return of an unauthorized or disputed ACH debit. While the return comes outside the standard window, it’s still allowed under NACHA rules and must be respected.
At Durango Merchant Services, we help businesses that deal with corporate clients navigate ACH rules, protect against disputes, and keep payments flowing smoothly. Whether you’re sending CCD payments for B2B billing or CTX entries for large, data-driven transactions, we can help ensure you’re doing it right.
