R05 - Unauthorized Debit to Consumer Account Using Corporate SEC Code

What this code means

A corporate SEC code (CCD or CTX) was used to debit what is actually a consumer account, and the consumer says they did not authorize it. This is an unauthorized-return code carrying full consumer-dispute semantics, not an administrative one.

Typical causes

• Originator classified a sole proprietor / consumer account as a business account
• Deliberate use of CCD to evade the consumer 60-day return window
• Wrong SEC code hard-coded in the originating system

What to do

Do not reinitiate. The consumer must sign a Written Statement of Unauthorized Debit. Counts toward Nacha's 0.5% unauthorized-return threshold. If the debit was legitimate, the Originator must re-originate under a correct consumer SEC code (PPD/WEB/TEL) with a proper consumer authorization.

What it looks like in an ACH return

The return arrives as an Addenda Record (type 99), 94 characters wide. The return reason code sits in positions 4-6.

799R05091000010000001      09100001                                            091000019000001

Tools for this code

Decode a real status report, or check a payment file before you send it — all in your browser, nothing uploaded.

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