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When you create a direct deposit transition and change the state of a direct deposit, you must include a valid reason code to explain why the transition was made (unless you are transitioning a direct deposit to the APPLIED state). The reason code you supply populates the reason_code field of the request body of a call to the POST /directdeposits/transitions endpoint (see Create direct deposit transition). These reason codes are only used for ACH processing, and are not shared outside the ACH network. As a Receiving Depository Financial Institution (RDFI), the Marqeta platform only supports a subset of the ACH reason codes created by NACHA. For the full list of codes, see the table below. For more information about return reason codes in general, see NACHA’s Return Reason Code Guide. https://www.nacha.org/products/return-reason-code-guide

Reason codes table

The following table describes supported reason codes and the grace period associated with each reason. The reason code’s grace period represents the period of time during which you can reverse a previously applied direct deposit. The grace period begins after the settlement date.
Note
Unless stated otherwise, the grace period is calculated using banking days, which excludes US holidays and weekends. For example, a transition created on the Friday before Memorial Day would have a grace period until the following Wednesday, since the Monday is a holiday and Saturday and Sunday are non-banking days.
CodeMessageDescriptionGrace Period
R01Insufficient fundsAvailable balance is not sufficient to cover the amount of the debit entry.2 days
R02Account closedAccount has been closed.2 days
R03No account

Unable to locate account

Inactive cardholder
Account number is a valid structure, but does not correspond to the user (or the cardholder is inactive). Also used when the account number designated is not associated with an existing account.2 days
R06Returned per ODFI requestThe Originating Depository Financial Institution (ODFI) has requested that the Receiving Depository Financial Institution (RDFI) return an Erroneous Entry, or a credit entry has originated without the originator’s authorization.60 days
R07Authorization revoked by customerThe RDFI’s customer (i.e., the receiver) revoked the authorization previously provided to the originator for this debit entry.60 days
R08Payment stoppedThe receiver has placed a stop payment order on this debit entry.2 days
R09Uncollected fundsA sufficient ledger balance exists to satisfy the dollar value of the transaction, but the available balance is below the dollar value of the debit entry.2 days
R10User advises of an unauthorized, improper, ineligible, or incomplete transaction.

User advises that the originator is unknown to the receiver and/or the originator is not authorized to debit the receiver’s account.
The user indicates that the transaction is unauthorized, improper, ineligible, or incomplete.

The receiver does not know the identity of the originator and/or the originator is not authorized by the receiver to debit the receiver’s account.
60 days
R11Customer advises entry not in accordance with the terms of the authorizationThe RDFI has been notified by the receiver that the originator and receiver have a relationship and an authorization to debit exists. However, an error in the payment means that the entry does not conform to the terms of the authorization (e.g. different amount than authorized, earlier than authorized, debit entry improperly reinitiated).

NOTE: When sending this reason code, the RDFI must include Addenda field information to specify the reason for the return, such as “exceeds dollar amount” or the stale date.
60 days
R14Representative payee is deceased or unable to continue in that capacityThe representative payee is a person or institution authorized to accept entries on behalf of one or more other persons, such as legally incapacitated adults or minor children. The transaction is denied because the representative payee is either deceased or unable to continue in that capacity. The beneficiary is not deceased.2 days
R15Beneficiary or account holder is deceasedThe transaction is denied because the beneficiary and/or the account holder (other than the representative payee) is deceased.2 days
R16Account frozen/returned per OFAC instructionAccess to the account has been restricted by the RDFI or by legal action, or OFAC has instructed the RDFI or gateway to return the entry.2 days
R17Suspicious or questionable transactionThe RDFI believes that the entry containing invalid account information was initiated under questionable circumstances.

NOTE: An RDFI who chooses to use R17 must add the description "QUESTIONABLE" to the Addenda Information field of the return. This will guide the ODFI when differentiating between suspicious returns and returns with routine account number issues.
2 days
R20Non-transaction accountThe ACH entry is destined for a non-transaction account, which is an account against which transactions are prohibited or limited.2 days
R23Credit entry refused by receiverAny credit that is refused by the receiver may be returned by the RDFI to the originator.60 days, starting from when the receiver notifies the program of the intention to decline the funds
R24Duplicate entryThe RDFI has received what appears to be a duplicate entry: the date, dollar amount, trace number, and other data matches another transaction.2 days
R29Corporate customer advises not authorizedThe RDFI has been notified by the receiver (non-consumer) that a specific entry has not been authorized by the receiver.2 days
For more information about National Automated Clearing House Association (NACHA) batch files, see www.nacha.org.

Direct deposit states

To change the state of a direct deposit, you must create a direct deposit transition that includes a valid reason code explaining why the transition was made (unless you are transitioning a direct deposit to the APPLIED state). Direct deposits can have the following states:
StateDescription
APPLIEDThe credit or debit is applied to the deposit account.
PENDINGThe credit or debit is ready to be applied on the settlement date.
REVERSEDIf transitioned from PENDING, the credit or debit is not applied to the deposit account.

If transitioned from APPLIED during the credit or debit grace period, the credit or debit is reversed (credits are debited, debits are credited). You cannot transition a credit or debit in the APPLIED state to REVERSED after the credit or debit grace period. The length of the grace period depends on the reason code associated with the state change. See the reason code table above for more information.

NOTE: You can only return credit entries using the R23 reason code. Attempting to return a debit entry by transitioning it to REVERSED using this endpoint would result in a 400 HTTP error code and the message, “R23 can only be used when returning a credit entry refused by the receiver.”
REJECTEDThe credit or debit is not applied to the deposit account. In general, this state indicates that the Marqeta platform did not recognize the account or routing numbers used in the credit or debit, or that the account holder receiving the credit or debit does not have an active card. You cannot transition a credit or debit in the REJECTED state to another state.