Bank Code Bank Code Errors 1 — Questions and Answers
Question 1: What is the most common cause of a failed ACH direct deposit?
- Incorrect SWIFT code
- Transposed digits in the routing or account number (Correct answer)
- Expired account number
- Wrong currency specified
Correct answer: Transposed digits in the routing or account number
The most common cause of failed ACH direct deposits is transposed digits in the routing number or account number, causing the payment to be rejected or misdirected.
Question 2: What ACH return code indicates that the routing number provided does not exist?
- R01 — Insufficient Funds
- R03 — No Account / Unable to Locate Account (Correct answer)
- R04 — Invalid Account Number
- R02 — Account Closed
Correct answer: R03 — No Account / Unable to Locate Account
ACH return code R03 (No Account / Unable to Locate Account) is returned when the routing number routes to a valid bank but the account cannot be found.
Question 3: If an ACH payment is returned due to an incorrect routing number, who typically bears responsibility for the error?
- The receiving bank
- The originating bank or business that submitted the incorrect information (Correct answer)
- NACHA
- The Federal Reserve
Correct answer: The originating bank or business that submitted the incorrect information
The originating bank or business that submitted the incorrect routing number is typically responsible for the error and must correct and resubmit the payment.
Question 4: What happens to funds sent via ACH to a valid routing number but a non-existent account number?
- The funds are held by the Federal Reserve
- The receiving bank returns the funds to the originating bank via ACH return (Correct answer)
- The funds are deposited into a general bank account permanently
- The transfer is automatically retried
Correct answer: The receiving bank returns the funds to the originating bank via ACH return
When funds are sent to a valid routing number but a non-existent account, the receiving bank issues an ACH return, sending the funds back to the originating bank.
Question 5: How long do banks typically take to process an ACH return for an incorrect routing or account number?
- Immediately — real-time rejection
- Up to 2 business days (Correct answer)
- Up to 5 business days
- Up to 30 business days
Correct answer: Up to 2 business days
ACH returns for invalid routing or account numbers are typically processed within 2 business days under NACHA rules.
Question 6: What is an 'ACH R04' return code?
- Insufficient funds
- Account closed
- Invalid account number structure (Correct answer)
- Stop payment order
Correct answer: Invalid account number structure
ACH return code R04 indicates an invalid account number — the format or structure of the account number is incorrect.
Bank Code Bank Code Errors 1
What is the most common cause of a failed ACH direct deposit?