How do we handle returns?

What is a return?
An ACH return is a reject generated by the receiving depository financial institution (RDFI) following an ACH transaction that tells us that the transaction could not be processed.

The most common reasons for return codes include:

  • Insufficient Funds
  • Account Closed
  • Invalid Account Number

Returns can occur even after a transaction has been marked as settled (See our FAQ on ACH for more info about settlement timelines).

How do we notify you of returns?
To help you manage return/chargeback notifications, please setup webhooks (see API reference). Webhooks will update you on the status of a transaction, including whether there was a return.

View a full list of our return codes here.

Returns typically occur up to two business days after a transaction has been marked as settled. Chargebacks may occur up to 60 days after a transaction has settled.

Who is responsible for covering a return?

In the case of a return, we will attempt to retrieve the funds from the fund recipient. We will update the status of the transaction so you know which account we are attempting to pull funds from (another reason to use webhooks!).

If we are unsuccessful at pulling funds back from the recipient's account, we will debit your reserve account to reconcile the negative balance. Please remember to setup webhook notifications for your reserve account to receive notifications of changes in your reserve balance.

If there are insufficient funds in your reserve account, we will debit your billing account. You must replenish your reserve account before the next business day if funds fall below the agreed upon reserve amount.

We reserve the right to charge a $15 fee for ACH returns. Additionally, if there is an increased number of returns, we may reevaluate your reserve requirements to cover the increased risk.

Have more questions? Submit a request