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When International ACH Payments Hit a Snag
Sending money across borders is no small task—and in the ACH network, international transactions require special attention. These payments are classified as IATs (International ACH Transactions) and come with specific coding requirements to meet U.S. regulations.
If there’s an issue with the way an IAT entry is coded, the system flags it with ACH Return Code R80.
Let’s break down what R80 – IAT Coding Error means, what causes it, and what you can do when it shows up.
What Does R80 Actually Mean?
ACH Return Code R80 stands for:
“IAT Coding Error.”
According to NACHA’s official definition:
R80 – IAT Coding Error: The IAT entry is being returned because it is missing necessary information or was improperly formatted according to IAT standards.
In everyday terms:
The ACH network couldn’t process the international payment because it was coded incorrectly or incompletely.
Why IAT Entries Are So Strict
IAT payments aren’t just ordinary ACH transactions—they involve extra rules because they cross U.S. borders.
Each IAT must include detailed information, like:
Full names and addresses of the originator and receiver
Country codes
Reason for the payment
Specific transaction type codes
This is all about transparency, security, and regulatory compliance—including laws that fight money laundering and terrorism financing.
If even one piece of required information is missing or misformatted, the ACH network can’t accept the payment—and that’s when R80 is triggered.
What Causes an R80 Return?
Several common mistakes can lead to an R80:
Missing mandatory IAT fields (like the receiver’s address or country code)
Incorrect formatting of names, numbers, or codes
Using U.S. ACH formatting instead of international formatting
Typos or invalid country codes
Software that isn’t properly configured for IAT entries
In short: if the transaction doesn’t tick every box, it’s coming back with an R80.
What to Do If You Get an R80 Return
1. Review the Original IAT Entry
Check every field for completeness and correct formatting. Look closely at country codes, addresses, and transaction type codes.
2. Correct the Errors
Fix any missing information, typos, or formatting issues in the IAT data.
3. Resubmit the Payment
Once the coding is corrected, you can resubmit the IAT entry through the ACH network.
4. Confirm Your IAT Software or Platform Is Compliant
If you’re seeing frequent R80 returns, it may be a sign that your ACH software isn’t fully configured for international transactions.
How to Avoid R80 Coding Problems Going Forward
Here’s how to minimize R80 returns:
Use ACH processing software that is IAT-ready and compliant with the latest rules
Provide training for your payment team on IAT-specific requirements
Validate all mandatory fields before submitting an international payment
Double-check country codes, addresses, and transaction purposes
Work with a payment processor experienced in international ACH transactions
Taking extra care upfront saves time, money, and hassle later.
Get ACH Payment Processing with Durango merchant Services
ACH Return Code R80—“IAT Coding Error”—is a clear signal that the international payment you submitted didn’t meet all the formatting and information standards required for cross-border transactions.
Fixing these issues quickly and carefully keeps your international payment operations compliant and running smoothly.
At Durango Merchant Services, we help businesses not just handle domestic ACH payments, but also navigate the extra complexity of international transactions. Whether you’re sending a handful of IATs or managing global payment workflows, we’ll make sure you’re ready to get it right the first time.
