Stop payment ACH returns can be identified when one of the below response codes is received.
This type of response warrants further action by the merchant prior to reattempting for payment on the same bank account, otherwise the payment will continue to reject for the same reason.
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R29 (Corporate Customer Advisement):
This code indicates that the corporate account holder has notified their bank that the transaction is not authorized to be paid. The same ACH reject response will be received if payment is re-attempted, unless the customer notifies their bank that the debit is in fact authorized.
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R08 (Payment Stopped):
This reject code means that the individual account holder has contacted their bank and advised that the transaction is not authorized to be paid. The same ACH reject response will be received if payment is re-attempted, unless the customer notifies their bank that the debit is in fact authorized.
- Prevention: Confirm authorization and payment details with the account holder, ensure the date of the expected debit is clearly communicated, ensure the customer has not previously contacted the company to discontinue services.
- Remediation: Contact the account holder to obtain a bank letter to provide in order to reprocess.
Bank Letter
For best practices, the bank letter should include:
- Be written on bank letterhead and dated
- The account holders name, last 4 of the account and routing that matches your records
- A statement that the account is active and able to receive debits from your company
- Be signed by a representative of the bank
Sample: