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ACH File Rejections

Problem

Your ACH (Automated Clearing House) file is being rejected by your ACH processor.

Understanding ACH File Rejections

When an ACH file is rejected, the ACH processor must provide a detailed error description that identifies:

  • Record Type - Which type of record has the error (e.g., "1" for File Header)
  • Record Name - The name of the record (e.g., "File Header")
  • Position Number - The field position where the error occurred
  • Field Name - The specific field with the error (e.g., "Immediate Destination")
  • Data in ACH File - What ProPay wrote to the file
  • Correct Data - What should have been written
  • Other Comments - Additional explanation of the error

Sample error description

Field Value
Record Type 1
Record Name File Header
Position No 3
Field Name Immediate Destination
Data written in ACH File 123456789
Data that should be written 9123456789
Other Comments The Immediate Destination field should be preceded by a "9"

Solution

Review Direct Deposits setup

The information entered in the Direct Deposits setup screen determines what ProPay writes into the ACH file.

  1. Go to Client Functions > Setup > Direct Deposits Setup.
  2. Review all fields for accuracy.
  3. Click the Help button on the setup screen for detailed instructions about each field.

Compare setup to error message

  1. Review the error description from your ACH processor.
  2. Identify the field name and position number where the error occurred.
  3. Locate the corresponding field in ProPay's Direct Deposits setup screen.
  4. Verify the data entered matches your bank's requirements.
  5. Make any necessary corrections.

Common ACH rejection causes

  • Incorrect routing number format
  • Missing or incorrect company ID number
  • Invalid immediate destination number
  • Incorrect immediate origin number
  • Missing or invalid discretionary data
  • Formatting errors in company name or description fields

Regenerate the ACH file

After making corrections:

  1. Go to Client Functions > Electronic Processing > Employee Direct Deposit Bulk.
  2. Delete the existing ACH file for the affected payroll.
  3. Generate a new ACH file.
  4. Verify the file balances (total debits should equal total credits).
  5. Submit the corrected file to your ACH processor.

Getting Help

If you cannot identify the error from the processor's description, contact Paysoft support with:

  • The complete error message from your ACH processor
  • Screenshots of your Direct Deposits setup screen
  • The payroll date affected

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