Reversals

If your platform has initiated erroneous or duplicated outgoing ACH transfers, you can use our ACH Reverse API to reverse them.

There are strict rules that dictate if an original ACH transfer can be reversed. The reversal transfer must be sent no later than 5 banking days after the effective date of the original transfer. In addition, you must make a reasonable attempt to notify the receiver that a reversal is in progress with its reason, no later than the settlement date of the reversal transfer. Finally, outgoing ACH transfers may be reversed only for the following reasons:

  • The original transfer is a duplicated transfer
  • The original transfer has an incorrect amount
  • The original transfer has an incorrect receiver account
  • The original transfer is an ACH debit requested earlier than intended
  • The original transfer is an ACH credit requested later than intended

An outgoing ACH transfer can be reversed at most once, and a reversal transfer cannot be reversed. When an outgoing ACH transfer is reversed, the status of the original transfer will not be changed, and the reversal transfer has its own lifecycle as any other ordinary outgoing ACH transfers. In addition, reversal_pair_transfer_id field of ach_transfer object is used to link the original transfer and the reversal transfer as:

original_transfer.reversal_pair_transfer_id = reversal_transfer.id
reversal_transfer.reversal_pair_transfer_id = original_transfer.id