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When a Dishonor Return Is Sent to the Wrong Place
The ACH system is highly organized, with specific rules for how payments and returns flow between banks. Occasionally, a dishonor return—which is used to reject a previously returned transaction—gets sent to the wrong financial institution. When that happens, it’s flagged as ACH Return Code R71.
Let’s walk through what R71 – Misrouted Dishonor Return means, why it happens, and how you can handle it quickly and correctly.
What Does ACH Return Code R71 Mean?
ACH Return Code R71 stands for:
“Misrouted Dishonor Return.”
Here’s NACHA’s official definition:
R71 – Misrouted Dishonor Return: A dishonored return entry was routed to the wrong bank. The Receiving Depository Financial Institution (RDFI) or the Originating Depository Financial Institution (ODFI) could not process it because it was not sent through the proper channel.
In plain terms: the dishonor return was sent to the wrong bank, so it couldn’t be processed.
What Is a Dishonor Return?
A dishonor return happens when a return entry is itself rejected.
For example, if a business tries to return a payment but the receiving bank disagrees with the reason for the return, the receiving bank can dishonor it—essentially saying, “This return isn’t valid.”
Dishonor returns must follow strict routing rules, and if they’re not sent to the right party, they are rejected with an R71 code.
Why Would an R71 ACH Return Happen?
Here are some typical reasons you might encounter an R71 return:
The dishonor return was sent to the wrong ODFI or RDFI
Routing number errors caused the dishonor to be misdirected
Manual processing mistakes during the return submission
System configuration problems that routed the dishonor incorrectly
R71 is not about whether the dishonor itself was justified—it’s simply about where it was sent.
How to Handle ACH Return Code R71
If you encounter an R71 return, here’s what to do:
1. Review the Dishonor Return Details
Check the routing numbers and transaction identifiers to confirm where the dishonor return was supposed to go.
2. Correct the Routing
Identify the correct ODFI or RDFI that should receive the dishonor return.
3. Resubmit the Dishonor Properly
Once you have the correct routing information, resubmit the dishonor return entry through the proper ACH channel.
4. Document the Correction
Keep records showing how the original misrouting was fixed to avoid confusion later.
How to Prevent R71 ACH Returns in the Future
Although R71 returns aren’t extremely common, you can minimize your risk by:
Carefully verifying routing numbers before submitting dishonor returns
Using ACH software that helps automatically validate return paths
Training your ACH operations team on proper routing procedures
Working with an ACH provider that monitors and manages return workflows carefully
Maintaining updated contact lists for banks involved in your ACH processing
Following the correct return channels prevents unnecessary delays and frustration.
Get ACH Payment Processing with Durango merchant Services
ACH Return Code R71—“Misrouted Dishonor Return”—means that a dishonor return was routed incorrectly and couldn’t be processed. While it’s mostly a technical routing error, fixing it quickly is key to resolving disputes and keeping your payment operations clean.
At Durango Merchant Services, we help businesses of all sizes manage ACH transactions, including handling returns, dishonors, and corrections properly. Whether you’re handling basic ACH payments or more complex scenarios, we’ll make sure your processes stay on track.
