R27 ACH Return Code: Trace Number Error

What Causes ACH Return Code R27?

The R27 ACH return code means "Trace Number Error" and indicates that the unique tracking number assigned to your ACH transaction is either missing from required records or doesn't match between related transaction components. Every ACH transaction receives a 15-digit trace number from the ODFI that serves as a critical identifier for tracking, reconciliation, and dispute resolution purposes.

R27 occurs in two specific scenarios: when the original entry trace number is missing from addenda records during returns or notifications of change, or when trace numbers don't match between addenda records and their corresponding entry detail records. This tracking system ensures transaction integrity and proper record-keeping throughout the ACH network, making accurate trace numbers essential for successful processing.

Can You Retry R27 Payments?

You can retry R27 payments after correcting the trace number issues. Add missing trace numbers to addenda records or ensure trace numbers match between all related transaction components before resubmitting the payment.

How to respond

An R27 return requires identifying and correcting the specific trace number issue before resubmitting the transaction.

When receiving payments

Review Transaction Trace Numbers
Check if trace numbers are missing from addenda records or mismatched between transaction components.
Verify Trace Number Format
Ensure trace numbers follow the correct 15-digit format (8-digit routing number + 7-digit sequence).
Correct Missing Information
Add the original entry trace number to addenda records for returns or NOC entries.
Match Trace Numbers
Ensure addenda record trace numbers match their corresponding entry detail records before resubmitting.

When sending payments

An R27 return on vendor payments indicates trace number errors in your payment file. This requires reviewing and correcting the transaction tracking information before reprocessing.

Review addenda records to ensure original entry trace numbers are included for returns or NOC entries
Verify that trace numbers match between addenda records and their corresponding entry detail records
Check your payment processing system for trace number formatting errors
Reprocess the vendor payment with corrected trace number information

Email template

From: [Your Company Name] <[your-email]>
To: [Customer Name] <[customer-email]>
Subject: Payment Processing Issue - Tracking Number Corrected

Hi [Customer Name],

We encountered a technical issue with the tracking number associated with your recent payment that prevented it from processing successfully. This involved the unique identifier used to track your transaction through the banking system.

We've identified and corrected the tracking number error 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 transaction tracking systems to prevent this technical issue from occurring again.

Thanks,

[Your Company Name]