Can we reverse an ACH?

  • ACH Reversal - the originator creates a reversing ACH to recall the original ACH transaction that was sent in error.  The reversing ACH has to be done within 5 business days of discovering the error. There is no guarantee funds will be returned. If an ACH payment has gone through successfully and no longer in Pending or Pending Review status. The ACH can be requested for a reversal if the following conditions are met: 
    1. Reversals have to be done within 5 days of the original transaction.
    2. The originator must notify the counterparty that they are processing a reversal.
    3. ACH reversal requests need to comply with NACHA rules. Reversals should only be used when there is an error on the original transaction. Such as a duplicate transaction.
    4. The reversing transaction must have REVERSAL in the description
SEC code (CCD/PPD) does not make a difference.
 
Reason for Reversal Request
The reversals should only be processed for one of the following reasons;
1. Duplicate Payment
2. Incorrect payment recipient
3. Incorrect payment amount
4. Payment date earlier than intended (ACH Debit Only)
5. Payment date later than intended (ACH Credit Only)

If these conditions are not met, the customer will need to work with the counterparties to resolve. 

 If you have any questions about whether the ACH reversal qualifies for a reversal, feel free to reach out to the Unit Support team. 

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