Less Common Payment FAQs
What is an ACH Return/Dispute?
Just like a credit card transaction, ACH transactions can be declined. When an ACH is declined, it’s called a return. An ACH return is most often initiated by the user's bank and can be divided into two categories:
- Administrative Returns
- Disputes
Administrative returns typically result from errors in the submitted payment information or issues with the account that cannot be resolved. For instance, combinations of routing and account numbers that are incorrect should not be resubmitted. Some administrative returns can be resubmitted, like insufficient funds, because nothing was incorrect about the details, there just weren't funds at the time of the debit.
Disputes are ACH payins that are determined to be invalid or unauthorized by the user. These are similar to a card chargeback, but unlike a chargeback, ACH disputes can not be challenged and are final. Because these are final, disputed routing and account number combinations should not be re-attempted.
Most Common ACH Return Codes
| CODE | DESCRIPTION |
| R01 | Insufficient Funds |
| R02 | Account Closed |
| R03 | No Bank Account/Unable to Locate Account |
| R04 | Invalid Account Number |
| R08 | Payment Stopped |
| R13 | Invalid ACH Routing Number |
| R16 | Account Frozen |
Most Common ACH Dispute Codes
| CODE | TITLE | ACCOUNT TYPE |
| R05 | Unauthorized Consumer Debit using Corporate SEC Code | Consumer |
| R08 | Payment Stopped | Consumer or Business |
| R10 | Originator not known and/or not authorized to Debit Receiver’s Account | Consumer or Business |
| R11 | Customer advises not within Authorization Terms | Consumer or Business |
| R29 | Not Authorized by Corporate Customer | Business |
I received a Lien Notice, what does that mean?
A lien notice is a formal document that informs an individual or entity that another party claims a legal right or interest in their property due to an outstanding debt. The notice is usually sent by contractors, suppliers, or sometimes the government.
If a lien notice is received, all money movement must stop until the issue is resolved. This includes collecting money, refunding transactions, and receiving your deposits. It is crucial to remedy liens as quickly as possible to avoid too much disruption to your day to day operations.
To resolve a lien notice, you can contact the lender to pay the debt in full or work out a payment plan to get back in good standing. Once resolved, the lender will provide you with a lien release document that can be sent to Prado.
What if my customer has an international zip code?
The zip code field is required and does not accept letters and some international postal codes. International buyers should enter “00000” or “11111” in the zip code field to submit a payment.
How do I know my payments are secure?
We leverage a third party payment provider to securely collect sensitive data and to keep our network out of PCI scope when processing your transactions. Our provider is held to the highest standard of security and is annually audited under SOC2 and PCI-DSS programs for compliance.
