Incorrectly Coded Outbound International Payment

Nacha's definition

The RDFI/Gateway has identified the Entry as an Outbound internal [sic] payment and is returning the Entry because it bears an SEC Code that lacks information required by the Gateway for OFAC Compliance. [For Gateway use only.]

Verbatim from Nacha — ISO 20022 Guide to Mapping U.S. ACH Return Items and Notifications of Change, August 2023, Version 2.01 (Table 1, return reason codes) (return reason code table). Applies to: ALL, EXCEPT IAT.

How it appears in an ISO 20022 statement

Nacha's mapping guide maps R85 to camt.053 reason code FF02 (Syntax Error) — ISO definition: Syntax error reason is provided as narrative information in the additional reason information. Nacha marks this ISO code as mapped to more than one Nacha return code, so the ISO code alone does not identify the Nacha reason; read the narrative or the original return record.

Return time frame

IAT and Gateway returns run to the time frames in the Nacha Operating Rules, which are not stated in the public sources used here.

Source: Nacha — ISO 20022 Guide to Mapping U.S. ACH Return Items and Notifications of Change, August 2023, Version 2.01 (Table 1, return reason codes)

Can the entry be reinitiated?

Nacha's reinitiation rule page allows reinitiation "to correct administrative errors", with fields other than Company Name, Company ID and Amount modified only to the extent necessary. A corrected resubmission of a returned debit is therefore treated as a reinitiation, within the Rules' limits and carrying RETRY PYMT. Nacha's reinitiation rule addresses returned debits; a returned credit falls outside it.

Source: Nacha — rule page 'ACH Network Risk and Enforcement Topics' (unauthorized return rate threshold; reinitiation of entries)

What an operator does next

The entry was an outbound international payment sent under an SEC code that lacks the OFAC-required information. Send it as an IAT.

PaymentBrief guidance, not Nacha text. Your ODFI's procedures and the current Nacha Operating Rules govern.

Where this comes up on PaymentBrief

Sources for this code

• Nacha — ISO 20022 Guide to Mapping U.S. ACH Return Items and Notifications of Change, August 2023, Version 2.01 (Table 1, return reason codes) — nacha-mapping-guide, retrieved 2026-09-06
• Nacha — rule page 'ACH Network Risk and Enforcement Topics' (unauthorized return rate threshold; reinitiation of entries) — nacha-rule-page, retrieved 2026-09-06