R25 ACH Return Code: Addenda Error

What Causes ACH Return Code R25?

The R25 ACH return code means "Addenda Error" and indicates that the supplementary information (addenda records) attached to your ACH transaction contains formatting errors or invalid data. Addenda records are optional information fields that provide additional details about payments, commonly used in corporate transactions to include invoice numbers, remittance information, or other business data.

When addenda records are included with ACH transactions, they must follow strict NACHA formatting standards and rules specific to the transaction type (SEC code). R25 occurs when these records don't meet requirements due to incorrect formatting, invalid sequences, missing required information, or exceeding system limitations. This return code helps maintain data integrity within the ACH network.

Can You Retry R25 Payments?

You can retry R25 payments after correcting or removing the problematic addenda records. Fix any formatting issues, ensure proper sequencing, reduce the number of addenda records if exceeding limits, or remove addenda entirely if not essential for the transaction.

How to respond

An R25 return requires reviewing and correcting the addenda records attached to your transaction or removing them if they're not essential.

When receiving payments

Review Addenda Content
Examine the supplementary information attached to the transaction for formatting errors or invalid data.
Check SEC Code Compatibility
Verify that addenda records are appropriate for the transaction type being used.
Validate Formatting Standards
Ensure addenda follows proper EDI formatting if using CTX or other corporate transaction types.
Correct or Remove Addenda
Fix formatting issues or remove addenda records entirely if they're not essential for processing.

When sending payments

An R25 return on vendor payments indicates formatting problems with the addenda records in your payment file. This requires reviewing and correcting the supplementary information before reprocessing.

Review the addenda records attached to the failed vendor payment for formatting errors
Check that addenda formatting complies with NACHA standards for your SEC code type
Reduce the number of addenda records if exceeding maximum limits
Reprocess the vendor payment with corrected addenda formatting or remove addenda if not needed

Email template

From: [Your Company Name] <[your-email]>
To: [Customer Name] <[customer-email]>
Subject: Payment Processing Issue - Supporting Information Error

Hi [Customer Name],

We encountered a technical issue with the supplementary information attached to your recent payment that prevented it from processing successfully. This involves the additional data fields used for payment identification and tracking.

We've identified and corrected the formatting error with this supporting information and will reprocess your payment within the next business day. No action is required on your part.

We apologize for any inconvenience and have updated our systems to prevent this technical formatting issue from occurring again.

Thanks,

[Your Company Name]