ACH Return Thresholds & Best Practices
If you’re not actively monitoring these return statistics, there’s a good chance you may be exceeding the allowed thresholds.
Here are some practical tips to help you stay compliant and protect your processing relationships:
- Never use ACH as a collection tool.
- For high-risk customers, switch to Debit Card Payments.
- Regularly monitor your ACH return reports.
- Be aware that moving to a new ACH provider is not simple — they will typically request your historical performance, and past issues can follow you.
Recommended ACH Return Rate Targets
| Category | Target | Return Codes |
|---|---|---|
| Unauthorized Returns | Less than 0.5% | R05 – Improper Debit to Consumer Account R07 – Authorization Revoked by Customer R10 – Customer Advises Not Authorized R11 – Entry Not in Accordance with Authorization Terms |
| Administrative Returns | Less than 3.0% | R02 – Account Closed R03 – No Account / Unable to Locate Account R04 – Invalid Account Number |
| Overall Returns | Less than 15% | All return codes, including R01 – Insufficient Funds (most common) |
Staying within these thresholds not only helps you remain compliant but also protects your standing with current and future ACH providers.
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