**The information below only pertains to online payments taken by Tripleseat Payments. If you are using Stripe, Square, or Fiserv, please contact those processors directly.
ACH returns occur when an ACH transaction is unable to be processed. This could happen for a variety of reasons, including incorrect account information, insufficient funds in the account, or a closed account. When an ACH return occurs, the funds are returned to the original account, and the transaction is canceled.
ACH returns in the console
To verify whether an ACH payment was returned, follow these steps:
- Go to “Payments”
- Find and click on the specific payment you want to check
If an ACH payment was returned, the payment status will show as “Returned” and details of the return will be visible in the 'Timeline' widget. Additionally, the payouts including the original charge as well as the ACH return will be visible in the 'Related Activity' widget. If the ACH return was covered by overdraft protection, an adjustment will typically be made in the same payout as the ACH return.
ACH return reasons and resolutions
| Error Message | Resolution |
| There are insufficient funds on the account to complete the transaction. | Contact the account holder to discuss other payment options, or attempt the transaction again once sufficient funds are available. |
| The account has been closed. | Verify the account information and attempt the transaction again with the correct account information, or contact the account holder to obtain updated account information. |
| The account cannot be located based on the provided account number. | Verify the account information and attempt the transaction again with the correct account information, or contact the account holder to obtain updated account information. |
| The account number is invalid. | Verify the account information and attempt the transaction again with the correct account information, or contact the account holder to obtain updated account information. |
| Account holder revoked authorization of the payment. | Contact the account holder to determine the reason for revoking authorization and take appropriate action to resolve the issue. |
| Account holder has placed a stop payment order on this payment. | Contact the account holder to determine the reason for stopping payment and take appropriate action to resolve the issue. |
| Account holder has notified their bank that they do not recognize the entity attempting to debit their account. | Verify that the account holder has authorized the transaction, and if not, contact the account holder to resolve the issue. |
| The account has been frozen. | Contact the account holder to determine the reason for the freeze and take appropriate action to resolve the issue. If the account is frozen due to legal action, consult with legal counsel to determine the next steps. |
| Transactions are prohibited or limited against this account. | Verify the account information and ensure that the account is a valid transaction account. If the account is not a transaction account, contact the account holder to obtain the correct account information. |
| Mandatory fields have either incorrect or missing data. | Review the transaction information and ensure that all required fields are completed correctly. Resubmit the transaction with the correct information. |
| Account holder has notified their bank that the payment was not authorized. | Verify that the transaction was authorized by the corporate account holder. If not, contact the corporate account holder to resolve the issue. If the transaction was authorized, contact the receiving bank to determine the reason for the return and take appropriate action. |
Preventing ACH returns
- Verify account information: Accurate and up-to-date account information is vital. Double-check routing and account numbers before initiating any ACH transaction.
- Implement account verification methods: Employ verification tools and services to validate account details, reducing the risk of processing payments to closed or invalid accounts.
- Set up sufficient funding monitoring: Regularly monitor account balances to ensure funds are available before initiating ACH transactions.
- Implement robust authorization protocols: Obtain explicit authorization from customers for recurring payments, and regularly review and update authorizations as necessary.
Managing ACH returns
- Notification and communication: Promptly inform customers of ACH return incidents, providing detailed explanations and guidance on resolving the issue.
- Payment re-submission: In some cases, it may be appropriate to re-submit the ACH transaction after addressing the cause of the return, such as resolving insufficient funds.
- Adjusting future transactions: If the return is due to authorization issues or customer-related factors, make the necessary adjustments for future payments to prevent recurring returns.