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When a Bank Isn't Set Up for International ACH Payments
International ACH Transactions (IATs) open a lot of doors for businesses that need to move money across borders. But not every bank is equipped to handle them. If you try to send an IAT to a financial institution that doesn’t participate in the IAT program, you’ll end up with ACH Return Code R81.
Let’s walk through what R81 – Non-Participant in IAT Program really means, why it happens, and what you can do to work around it.
What Does R81 Actually Mean?
ACH Return Code R81 stands for:
“Non-Participant in IAT Program.”
According to NACHA:
R81 – Non-Participant in IAT Program: The RDFI (Receiving Depository Financial Institution) does not participate in the International ACH Transaction (IAT) program and cannot process the transaction.
Put simply:
You tried to send an international ACH payment to a bank that isn’t set up to accept international ACH transactions.
It’s not about the payment being wrong—it’s about the receiving bank not being in the right program to handle it.
What Causes an R81 Return?
There are a few main reasons R81 might pop up:
The receiving bank hasn’t opted into the IAT program
The receiving bank’s ACH processing system doesn’t support international entries
The bank only handles domestic ACH transactions
Technical or policy restrictions at the RDFI prevent them from accepting IATs
In any case, the result is the same: the payment can’t be delivered through ACH the way you attempted.
What to Do If You Get an R81 ACH Return
1. Verify the Bank’s Capabilities
Confirm with your customer or vendor whether their bank can accept international wire transfers or if they have another account that accepts IATs.
2. Find an Alternate Payment Method
You might need to send the funds another way, such as:
Wire transfer
SWIFT transfer
Payment through a bank that participates in IAT
3. Communicate With the Recipient
Let the customer or vendor know what happened and offer alternatives. They may already have another account set up for international transactions.
4. Update Your Internal Records
Document the R81 return and the resolution path for audit purposes and future payment planning.
How to Avoid R81 Returns in the Future
Here are a few tips to help minimize the chance of hitting R81 errors:
Ask new international customers whether their bank can accept ACH IATs
Request a SWIFT code if you suspect ACH won’t be an option
Use ACH processors that verify IAT eligibility for receiving banks before submitting payments
Keep a list of banks you know cannot process IATs to flag future transactions
A little upfront planning can save you a lot of back-and-forth later.
Get ACH Payment Processing with Durango merchant Services
ACH Return Code R81—“Non-Participant in IAT Program”—means the bank you tried to send an international ACH payment to isn’t part of the network that handles those kinds of transactions.
It’s not a failure on your part—it just means you’ll need to pick a different route to get the money where it needs to go.
At Durango Merchant Services, we help businesses navigate the ins and outs of both domestic and international payments. Whether you’re processing local payroll or sending funds halfway across the world, we’ll help you do it right—with fewer returns and less frustration.
