An Automated Clearing House (ACH) debit payment made via the Unemployment Tax Services system may be rejected by your bank for many different reasons. The following is a list of the most common reasons:
- Account Closed
- A previously active account has been closed by action of the customer or Receiving Depository Financial Institution (RDFI).
- Account Frozen
- The funds in the account are unavailable due to specific action by the RDFI or by legal action.
- Authorization Revoked by Customer
- The RDFI’s customer, who has previously authorized recurring withdrawals, has revoked the authorization with the originator for this particular transaction.
- Corporate Customer Advises Not Authorized
- The RDFI has been notified by the corporate receiver that the originator of a given transaction has not been authorized to debit the receiver's account.
- Customer Advises Not Authorized or Item is Ineligible, Notice Not Provided, Signatures Not Genuine
or Item Altered - The RDFI has been notified by its customer that the originator of a given transaction has not been authorized to debit the customer’s account.
- Insufficient Funds
- The available or cash reserve balance is not sufficient to cover the dollar value of the debit entry.
- Invalid Account Number
- The account number structure is not valid. The entry may fail the check digit validation or may contain an incorrect number of digits.
- No Account/Unable to Locate Account
- The account number structure is valid and passes the check digit validation, but does not correspond to the individual identified in the entry or is not an open account.
- Non-Transaction Account
- Policies or regulations restrict activity to the account.
- Payment Stopped or Stop Payment on Item
- The RDFI’s customer of a debit transaction has stopped payment to a specific ACH debit.
- Routing Number Check Digit Error
- The check digit for a routing number is invalid.
- Uncollected Funds
- Sufficient book or ledger balance exists, but the value of uncollected transactions brings the available or cash reserve balance below the dollar value of the debit entry.
