Rules For ACH Reversal: Everything you Need to Know!

 When it comes to ACH reversal, there are a few rules you'll need to follow. First, the request for an ACH reversal must be initiated within 60 days of the original transaction date. Additionally, if the original transaction was made more than 90 days ago, the bank may not process it.

What Is ACH Reversal Rules ?

ACH reversals are typically accomplished with a Request for Reversal of an ACH Credit (RARC) or a Request for Reversal of an ACH Debit (RAD). The ODFI must provide written documentation to justify why the reversal is necessary, and this must be received by the Receiver’s bank in order for the reversal to be accepted and processed.

How Does it Work?

When a request for an ACH reversal is initiated, the ODFI must provide all information about the original transaction to their bank or the ACH operator. This includes details such as the amount, date of settlement, and other identifying elements of the transaction. The ODFI’s financial institution then informs the Receiver’s bank that the request for an ACH reversal has been made.


The Receiver’s bank then verifies that the original transaction meets all criteria for a valid ACH reversal and either accepts or denies the request. If accepted, the funds from the original transaction are returned to the ODFI’s account in accordance with applicable laws and regulations.

Are There Any Fees Associated With ACH Reversal?

Yes, there are usually fees associated with ACH reversal requests. These fees vary from one financial institution to another, so it's important to be aware of the fee structure before initiating a request for an rules for ACH reversal. Additionally, depending on the nature of the transaction, the Receiver may also be assessed a fee.


Finally, there are certain legal obligations that must be met by both the ODFI and the Receiver when initiating an ACH reversal. These include requirements for written documentation and proof of authorization, as well as notification to customers and other parties involved. It's important to read all applicable laws and regulations before initiating an ACH reversal request.


With proper preparation and understanding of the rules associated with ACH reversal, you can make sure that your transactions are processed correctly and quickly. Knowing the steps to take when making a request for an ACH reversal will help protect both parties involved from any potential legal issues or financial losses.

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