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Why Do ACH Returns Occur?
Written by Treez Admin
Updated over a week ago
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ACH returns can occur for various reasons. The most common reasons are included below:

    • Insufficient Funds: When the customer’s account lacks the necessary funds to cover the payment.

    • Account Closure: If the customer closes their account before the transaction is completed.

    • Invalid Account Number: When the provided account number is incorrect or improperly structured.

    • Unauthorized Transaction: Occurs when a payment intended for a business is mistakenly processed on a consumer account, or vice-versa.

    • Revoked Authorization: When the customer revokes permission for the transaction.

    • Payment Stop: When the customer stops the payment before it is processed.

    • Uncollected Funds: Happens when subsequent payments deplete the payer's account, leaving insufficient funds.

    • Customer Dispute: If the payer claims they don't recognize the merchant or didn't authorize the debit.

    • Legal Action: Account freezing due to legal actions like tax liens or settlements.

    • Non-Transaction Account: When the customer uses a non-transaction account for the payment, such as a money market deposit account.

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