Understanding and Resolving U80/U02 Decline Codes
When processing ACH payments, you may encounter decline codes U80 or U02. These codes indicate that the bank account in question is on the Known Bad List (KBL), a list maintained by payment processors to flag accounts with prior issues. Below, we explain the reasons for these declines and provide actionable steps to resolve them.
What Are U80/U02 Decline Codes?
U80 and U02 decline codes signify that the bank account has been flagged on the Known Bad List. This occurs when prior ACH transactions from the account were returned for reasons such as:
Account closed (R02)
No account/unable to locate account (R03)
Invalid account number (R04)
Authorization revoked by customer (R07)
Payment stopped (R08)
Customer advises not authorized (R10)
Account frozen (R16)
Corporate customer advises not authorized (R29)
When an account is on the KBL, any transaction using the same routing (TRN) and account (DDA) numbers will automatically be declined as "Account Not Approved."
Why Are Accounts Placed on the Known Bad List?
Accounts are added to the KBL due to repeated ACH return codes that indicate invalid or unauthorized account details. Common causes include:
Transposed or incorrect digits in the routing or account numbers
Accounts flagged for unauthorized transactions
Accounts closed or frozen by the bank
These issues are flagged to prevent further failed transactions and potential fraud.
Steps to Resolve U80/U02 Declines
To resolve these declines and successfully process payments, follow these steps:
Verify Bank Details: Double-check the routing (TRN) and account (DDA) numbers for accuracy. Transposed or incorrect digits are a common cause of these issues.
Contact the Payment Processor: - Reach out to Forte's support team to confirm the accuracy of the bank details. - Request removal of the account from the Known Bad List after verification.
Retry the Payment: - Once the account is verified and removed from the KBL, attempt the payment again using the corrected details.
Sharing Information with Vendors
If the issue involves a vendor’s bank account, you can share the Known Bad List explanation with them. This helps them understand why the payment was declined and how to resolve it.
Related Topics
ACH Return Codes and Their Implications
Troubleshooting Declined Payments
Contacting ACH Processor Support for Assistance