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Transfer Failures #

There are several reasons bank transfers can fail, a few of which are outlined below. When a transfer fails it is usually a result of an ACH failure which is assigned an ACH return code after being rejected from the financial institution. A few common failure examples include:

  • Insufficient Funds (R01): Pending transfers can fail due to insufficient funds from the source bank account.
  • No Account/Unable to Locate Account (R03): The recipient of a transfer has closed their bank account or has incorrectly entered their bank account/routing number when attaching their funding source.
  • Customer Advises Not Authorized (R10): The owner of a bank account has told their bank that this transfer was unauthorized.

Retrieving the transfer #

You can check the status of a transfer at any time by retrieving the transfer via the API. When a bank transfer is unable to be completed, its status will be updated to failed. The response from the API when retrieving the transfer should contain a "failure" link that your application will follow to retrieve the transfer failure reason in the next step.

Example failure link
"failure": {
    "href": "",
    "type": "application/vnd.dwolla.v1.hal+json",
    "resource-type": "failure"

Retrieving the reason for a failed bank transfer #

If your application is subscribed to webhooks, you’ll receive either the transfer_failed event if the transfer belongs to a Dwolla account or the customer_transfer_failed/customer_bank_transfer_failed(Verified Customer only) event if the transfer belongs to an API Customer. The event contains a links to the associated account as well as the transfer resource. When retrieving the failed bank transfer reason, the response will contain information on the ACH return code and description, as well as _links to the Funding Source and Customer that triggered the bank transfer failure.

Request and response (view schema in 'raw')
Accept: application/vnd.dwolla.v1.hal+json
Authorization: Bearer pBA9fVDBEyYZCEsLf/wKehyh1RTpzjUj5KzIRfDi0wKTii7DqY

    "_links": {
        "self": {
            "href": "",
            "type": "application/vnd.dwolla.v1.hal+json",
            "resource-type": "failure"
        "failed-funding-source": {
            "href": "",
            "type": "application/vnd.dwolla.v1.hal+json",
            "resource-type": "funding-source"
        "customer": {
            "href": "",
            "type": "application/vnd.dwolla.v1.hal+json",
            "resource-type": "customer"
    "code": "R03",
    "description": "No Account/Unable to Locate Account",
    "explanation": "The account number does not correspond to the individual identified in the entry or a valid account."

What occurs in the Dwolla system when a bank transfer fails? #

When a bank transfer failure occurs there is a subset of systematic actions Dwolla may take on the Customer and/or the funding source based on the ACH return code. It is recommended to have an active webhook subscription, which is used to listen for events relating to any Customer or funding source state change. Please refer to the table below to understand the systematic actions that Dwolla may take for Customer and funding source resources, as well as the events that are created.

Systematic actions taken against the Customer

Customer actionDescriptionWebhook Event
NoneNo action taken against the Customer account as result of transfer failureN/A
DeactivatedCustomer account has been deactivatedcustomer_deactivated

Systematic actions taken against the bank funding source

Funding Source actionDescriptionWebhook Event
NoneNo action taken against the Customer bank funding sourceN/A
UnverifiedA Customer's bank has been unverified, but not removedcustomer_funding_source_unverified
RemovedA Customer's bank has been removedcustomer_funding_source_removedcustomer_funding_source_removed

Why does Dwolla automatically take these actions? #

Being able to catch and take action errors can be beneficial on many levels. For instance, if your Customer initiates a transaction which fails with an R10 (Customer Advises Not Authorized) return code, Dwolla will automatically put the suspected Customer in a deactivated status, thereby not allowing them to initiate or receive more transfers. This gives you the ability investigate the Customer to determine if they are a valid party without worrying about them sending funds. Other return codes may only affect bank funding sources in which Dwolla may automatically unverify or remove a bank in response to various return codes.

List of possible return codes, descriptions, and actions #

Below is a table of the most common return codes we see involved in transactions. For a full list of return codes, you can check out the ACH return code list on our blog.

Return CodeReason for Return & DescriptionReturn Time FrameDeactivated or SuspendedFunding Source UnverifiedFunding Source RemovedFunding Source Blocklisted*
R01Insufficient Funds
Available balance is not sufficient to cover the dollar value of the debit entry.
2 banking daysNoNoNoNo
R02Bank Account Closed
Previously active account has been closed.
2 banking daysNoYesYesYes
R03No Account/Unable to Locate Account <br/ > Account number structure is valid, but does not match individual identified in entry or is not an open account.2 banking daysNoYesYesYes
R04Invalid Bank Account Number Structure
Account number structure is not valid.
2 banking daysNoYesYesYes
R05Unauthorized Debit to Consumer Account Using Corporate SEC Code
A CCD or CTX debit entry was transmitted to a consumer account and was not authorized by the Receiver. Written Statement is required.
60 calendar daysYesYesYesYes
R06Returned per ODFI’s Request
The ODFI has requested that the RDFI return an erroneous entry, or a credit entry originated without the authorization of the Originator.
Not Defined, Determined by ODFI and RDFIYesYesYesYes
R07Authorization Revoked by Customer
Consumer who previously authorized entries has revoked authorization with the Originator. Written Statement is required.
60 calendar daysYesYesYesYes
R08Payment Stopped
The Receiver has requested the stop payment of a specific ACH debit entry.
2 banking daysNoYesYesNo
R09Uncollected Funds
Sufficient balance exists, but value of uncollected items brings available balance below amount of debit entry.
2 banking daysNoNoNoNo
R10Customer Advises Originator is Not Known to Receiver and/or Originator is Not Authorized by Receiver to Debit Receiver’s Account
Receiver has no relationship with the Originator or has not authorized the Originator to debit the account. Written Statement is required.
60 calendar daysYesYesYesYes
R11Customer Advises Entry Not in Accordance with the Terms of the Authorization
The debit entry was inaccurate or improperly initiated. Other reasons include source document was ineligible, notice was not provided to the receiver or amount was inaccurately obtained. Written statement is required.
60 calendar daysYesYesYesYes
R12Branch Sold to Another DFI
A financial institution received an entry to an account that was sold to another FI (typically due to a merger).
2 banking daysNoNoYesNo
R13Invalid ACH Routing Number
Entry contains a receiving DFI identification or gateway identification that is not a valid ACH routing number.
Next File Delivery Time Following ProcessingNoYesYesYes
R14Representative Payee Deceased or Unable to Continue in That Capacity
The representative payee is a person either deceased or no longer able to continue in original capacity (i.e. legally incapacitated adults or minors), while the beneficiary is not deceased.
2 banking daysYesNoYesNo
R15Beneficiary or Account Holder Deceased
(1) The beneficiary is deceased, or (2) The account holder is deceased.
2 banking daysYesYesYesYes
R16Account Frozen/Entry Returned per OFAC Instruction
(1) Access to the account is restricted due to specific action taken by the RDFI or by legal action; or (2) OFAC has instructed the RDFI to return the entry.
2 banking daysYesYesYesYes
R17File Record Edit Criteria/Entry with Invalid Account Number Initiated Under Questionable Circumstances
(1) Field(s) cannot be processed by RDFI; or (2) The entry contains an invalid DFI Account Number (account closed/no account/unable to locate account/invalid account number) and is believed by the RDFI to have been initiated under questionable circumstances.
2 banking daysYesYesYesYes
R20Non-Transaction Account
ACH entry to a non-transaction account (typically due to account holder exceeding their monthly withdrawal threshold under Regulation D).
2 banking daysNoNoYesYes
R22Invalid Individual ID Number
The Receiver has indicated to the RDFI that the number with which the Originator identified is not correct.
2 banking daysNoYesNoNo
R23Credit Entry Refused by Receiver
Any credit entry that is refused by the Receiver may be returned by the RDFI.
2 banking daysNoYesYesNo
R29Corporate Customer Advises Not Authorized
The RDFI has been notified by the Receiver (non-consumer) that a specific entry has not been authorized by the Receiver.
2 banking daysYesYesYesYes
R31Permissible Return (CCD and CTX only)
The RDFI may return a CCD or CTX entry that the ODFI agrees to accept.
Not Defined, Determined by ODFI and RDFIYesYesYesYes
R37Source Document Presented for Payment
Source document to which an ARC, BOC, or POP entry relates has been presented for payment. Written Statement is required.
60 calendar daysNoNoYesNo
R38Stop Payment on Source Document
The RDFI indicates a stop payment order has been placed on the source document the ARC or BOC entry relates to.
60 calendar daysYesYesYesYes
R51Item Related to RCK Entry is Ineligible or RCK Entry is Improper
The RDFI notifies that the RCK entry is considered ineligible or improper. Written Statement is required.
60 calendar daysYesYesYesYes

* If a funding source is added to the blocklist as a result of an ACH return code, you will need to contact your Customer Excellence Manager to get it removed.

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