R85 - Incorrectly Coded Outbound International Payment

What this code means

A payment that is in fact part of an outbound international transaction was originated as a domestic entry (e.g. PPD/CCD) instead of being properly coded as IAT. The RDFI/Gateway is returning it so it can be re-coded.

Typical causes

• Cross-border payment sent as a domestic PPD/CCD instead of IAT
• Originator unaware the funds were destined outside the US
• Third-party payment processor failed to flag the international leg

What to do

Re-originate the payment correctly as an IAT entry with the full mandatory addenda. Note this code is closely tied to the compliance obligation to identify cross-border payments for OFAC screening.

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.

799R85091000010000001      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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