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When a Check Re-Presentation Runs Into Legal Restrictions
One advantage of ACH processing is that it lets businesses re-present a bounced check electronically, saving time compared to trying to redeposit a physical check. These types of transactions are known as RCK (Re-Presented Check Entries). But while RCK entries are accepted almost everywhere, some state laws place restrictions on how they can be used.
When that happens, you might see ACH Return Code R50.
Let’s break down what R50 – State Law Affecting RCK Acceptance means, why it comes up, and what you can do about it if it happens to you.
What Does ACH Return Code R50 Mean?
ACH Return Code R50 stands for:
“State Law Affecting RCK Acceptance.”
Here’s the official NACHA definition:
R50 – State Law Affecting RCK Acceptance: The RDFI (Receiving Depository Financial Institution) is returning the RCK entry because the transaction is not allowed under the laws or regulations of the state where the bank operates.
In simple terms: the customer’s bank cannot accept an electronic re-presentment of a check because of local or state-specific rules.
What Is an RCK Entry?
RCK (Re-Presented Check Entry) allows a business to electronically re-deposit a bounced check—specifically, one that was returned due to non-sufficient funds (NSF).
Instead of trying to re-deposit the paper check physically, the business converts the check into an electronic ACH entry and tries again to collect the funds. It’s faster, easier, and often more successful than traditional redeposit attempts.
Why Would an R50 Return Happen?
Here are the main reasons you might encounter an R50 return:
State regulations prohibit or restrict electronic re-presentment of checks
The RDFI operates in a jurisdiction that doesn’t recognize RCK entries under their banking rules
The type of check or account involved is excluded from ACH re-presentment by state law
Special consumer protections under local law prevent automatic re-presentment electronically
R50 doesn’t mean the customer’s account is closed or invalid—it’s a legal limitation beyond the control of the customer or the business.
How to Handle ACH Return Code R50
Here’s how to handle an R50 return if it happens:
1. Confirm That the Return Was an RCK Attempt
Double-check the original transaction type to confirm that it was submitted as an RCK entry.
2. Contact the Customer (If Appropriate)
If you have a relationship with the customer, you may want to inform them that their bank does not accept electronic re-presentment of checks. Offer alternative payment options.
3. Collect Payment Another Way
Since RCK isn’t an option in this case, you’ll need to either:
Request a new payment (such as a new check, ACH debit authorization, credit card, or other form of payment)
Initiate collection through traditional methods
4. Consult State-Specific Guidelines
If RCK returns are happening frequently with customers in a particular state, you may want to review that state’s banking laws—or talk to your ACH processor—to better understand your options.
How to Avoid R50 ACH Errors in the Future
While you can’t completely prevent R50 returns because they’re based on local law, you can minimize the disruption:
Know which states restrict RCK entries and plan alternate collection strategies if you serve customers there
Use clear customer communication if a check is returned—so they know payment options immediately
Offer multiple payment methods to avoid reliance on re-presentment attempts
Work with an ACH provider that can alert you to state-specific restrictions before you attempt RCK entries
Having a flexible collections process helps protect your cash flow even when RCK isn’t an option.
Get ACH Processing With Durango
ACH Return Code R50—“State Law Affecting RCK Acceptance”—means your attempt to re-present a bounced check electronically was blocked by local law. While it’s frustrating, it’s not a failure on your part or the customer’s part—it’s simply a legal boundary you have to work around.
At Durango Merchant Services, we help businesses manage all aspects of ACH processing—including navigating tricky issues like RCK limitations. Whether you’re handling standard transactions, collections, or high-risk payments, our team is ready to support you.
