R02 | Account closed
This code indicates the RDFI returned the entry because the receiving account is closed.
What This Code Means
R02 is used when the receiving institution identifies that the account number provided corresponds to an account that has been closed. In ACH processing, the RDFI is responsible for determining whether the receiver account can accept the entry. A closed account cannot settle the debit (or credit, depending on context), so the entry is returned. This return code reflects account status at the RDFI, not a network outage or temporary posting delay. It does not automatically indicate the routing number is invalid; it indicates the specific account is not open and eligible to receive the entry.
Where Users Usually See This Code
- Returned ACH payments shown in payment processor reports
- Billing platform notifications for failed bank drafts
- Originator reconciliation files indicating account status returns
Why This Code Appears
- The receiver closed the account before the entry was processed
- The originator used outdated bank account details
- An account was converted or migrated and the old account number is no longer active
- The RDFI’s records indicate the account is no longer open for ACH activity
What Typically Happens Next
- The entry is returned with R02 and the originator is notified via standard ACH return flows
- The payment status is updated to returned/failed
- Further entries to the same account details are likely to return again unless details change
What This Code Is Not
- It is not “no account found” (see R03)
- It is not an invalid account number format issue (see R04)
- It is not a stop payment request (see R08)
Troubleshooting Checklist
- □ Verify that the account information on file is current and complete
- □ Review whether the receiver recently changed bank accounts
- □ Confirm whether the payment attempt should be redirected to updated payment instructions
- □ Document the return code for reconciliation and audit trails
Notes And Edge Cases
Some institutions distinguish between “closed” and “unable to locate,” which can lead to R02 versus R03 depending on how the RDFI maps account status. If an account is recently closed, timing may affect which return code is used for entries presented near the closure date. Account number reuse policies vary; a number that was previously valid may later be reissued or reserved, but the RDFI’s return reason will reflect current eligibility.