What does the Return Code R01 indicate?

The Return Code R01 signifies that there are insufficient funds in the consumer's account at the time the transaction is processed. This code is an important part of the ACH (Automated Clearing House) network as it notifies the originating bank that the transaction cannot be completed due to a lack of available funds in the receiver's account.

Understanding this code helps electronic payment professionals manage transactions effectively and communicate with consumers regarding payment issues. When a transaction fails due to insufficient funds, it is a common practice for the receiving institution to inform the sender of the failed transaction so that alternative payment arrangements can be made or reattempting the transaction when funds are available can be considered.