R16 | Account frozen
This code indicates the receiving account is frozen or restricted and cannot accept the entry as presented.
What This Code Means
R16 is returned when the RDFI identifies the receiver’s account as frozen, blocked, or otherwise restricted from processing the ACH entry. A “frozen” status generally means the bank has placed restrictions that prevent certain transactions from posting, often for administrative, compliance, legal, or risk-control reasons. This return is not a funding condition like insufficient funds, and it is not necessarily an account closure. It indicates the account cannot accept the presented entry due to the bank’s current restrictions. The code communicates posting ineligibility tied to account status restrictions.
Where Users Usually See This Code
- ACH debit or credit returns in settlement reports
- Payment processor dashboards listing account restriction returns
- Bank operational files for returned entries
Why This Code Appears
- The bank applied a freeze or restriction to the account
- Compliance or risk controls prevented posting of the entry
- Account status changed due to internal bank review
- The entry type is not permitted while the restriction is active
What Typically Happens Next
- The entry is returned with R16
- The originator records the transaction as returned due to account restriction
- Additional entries to the same account details may return again while the restriction remains
What This Code Is Not
- It is not a closed account status (see R02)
- It is not an invalid account number result (see R04)
- It is not an authorization dispute (see R05/R07/R10)
Troubleshooting Checklist
- □ Log the return code and associated entry attributes for reconciliation
- □ Confirm whether repeat entries should be paused under your internal policies
- □ Review whether the entry type or schedule could be affected by temporary restrictions
- □ If processing through a provider, follow the official exception-handling workflow
Notes And Edge Cases
Account restriction behavior varies by institution and by transaction type. An account may accept some transaction categories but reject others depending on the restriction scope. Timing can matter: an entry may return if presented during a restriction window even if it would otherwise be valid. The return code does not specify the reason for the freeze, and originators may not be able to infer the underlying cause from R16 alone.