Account Sold to Another DFI
The customer's bank or branch has been sold to another financial institution.
What Causes ACH Return Code R12?
The R12 ACH return code means "Account Sold to Another DFI" and indicates that the customer's bank or branch has been sold to another Depository Financial Institution (DFI). This typically occurs during bank mergers, acquisitions, or when individual branches are sold to other financial institutions. The original bank can no longer process transactions for these accounts and must return them to the originating institution.
During transition periods, the acquiring bank may temporarily accept transactions using the old routing numbers to ease customer transitions. However, once this grace period ends, all transactions using outdated bank information will be returned with R12 codes until customers update their account details with the new institution's information.
Can You Retry R12 Payments?
You cannot retry R12 payments using the same bank information. You must obtain the customer's updated account and routing numbers from their new financial institution and create an entirely new transaction. Simply retrying with the old information will continue to result in R12 returns since the original bank no longer maintains the account.
How to respond
An R12 return indicates institutional changes requiring updated customer banking information. Focus on obtaining new account details from the customer's current financial institution.
When receiving payments
- Contact Customer Immediately
Reach out to explain that their bank has been sold or merged and you need updated account information. - Request New Banking Details
Ask for their new routing number, account number, and any other updated information from their current institution. - Verify Information Accuracy
Confirm the new details with a voided check or official bank documentation to prevent future errors. - Create New Transaction
Process a completely new transaction with the updated information rather than modifying the original.
When sending payments
An R12 return on vendor payments means the vendor's bank has been sold or merged with another institution. This requires obtaining updated banking information to continue processing payments to the vendor.
- Contact the vendor to inform them of the banking transition issue
- Request their new routing and account numbers from their current institution
- Verify the new information with official documentation
- Set up new payment records with the updated banking details
Email template
- From
- [Your Company Name] <[your-email]>
- To
- [Customer Name] <[customer-email]>
- Subject
- Banking Information Update Needed - Bank Transition
Hi [Customer Name],
We received notice that your bank has undergone changes (merger, acquisition, or branch sale), and we can no longer process payments using your previous account information.
To continue processing your payments smoothly, we'll need your updated banking details from your current financial institution:
- New routing number
- New account number
- Any other relevant changes
Could you provide a voided check or official documentation from your current bank? This ensures we have accurate information and prevents any future payment issues.
Thanks,
[Your Company Name]