Stop Payment on Source Document
Customer placed a stop payment order on the original check.
What Causes ACH Return Code R38?
The R38 ACH return code means "Stop Payment on Source Document" and indicates that a customer has placed a stop payment order on the original paper check that was subsequently converted into an ARC (Accounts Receivable Conversion) entry. This occurs when businesses convert received checks into electronic ACH transactions, but the customer has separately instructed their bank to stop payment on that specific check.
R38 returns happen when there are timing issues or system disconnects between traditional check stop payment processes and ACH conversion systems. The customer may have valid reasons for stopping payment (such as disputing goods or services), and this return code ensures their stop payment instruction is honored even when the check has been converted to electronic format.
Can You Retry R38 Payments?
You cannot retry R38 payments because the customer has explicitly instructed their bank to stop payment on the original check. You must contact the customer directly to understand why they stopped payment and work to resolve the underlying issue before seeking alternative payment arrangements.
How to respond
An R38 return indicates the customer intentionally stopped payment on the original check, requiring direct communication to understand and resolve the underlying payment dispute or issue.
When receiving payments
- Contact Customer Immediately
Reach out to understand why they placed a stop payment order on their check and work to resolve any underlying issues. - Do Not Retry the Same Payment
Since the customer explicitly stopped payment, attempting to reprocess would violate their payment instruction. - Investigate the Root Cause
Determine if the stop payment was due to disputes over goods/services, billing errors, or other legitimate concerns. - Seek Alternative Resolution
Once the underlying issue is resolved, request a new payment method or new check from the customer.
When sending payments
An R38 return on vendor payments means the vendor placed a stop payment order on their check after you converted it to electronic format. This requires immediate communication to understand why they stopped payment and resolve any underlying issues.
- Contact the vendor immediately to understand why they placed a stop payment order on their check
- Investigate whether there are disputes over goods, services, or payment amounts that need resolution
- Work with the vendor to resolve any underlying issues before seeking alternative payment methods
- Request a new form of payment once the stop payment concerns have been addressed
Email template
- From
- [Your Company Name] <[your-email]>
- To
- [Customer Name] <[customer-email]>
- Subject
- Payment Processing Issue - New Payment Method Needed
Hi [Customer Name],
We received notification that you placed a stop payment order on your recent check payment. We want to make sure we understand and resolve any concerns you may have.
Could you please contact us to discuss why the stop payment was necessary? We're committed to addressing any issues with your order, billing, or service and want to ensure your complete satisfaction.
Once we resolve any concerns, we can discuss the best way to complete your payment. We appreciate your business and want to make this right.
Please call us at your earliest convenience.
[Your Company Name]