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.
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.
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 send you an email notification. We will then debit the account you have designated for billing.
If there are insufficient funds in your billing account, we will debit your reserve 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.