Reference guide

ACH returns, reversals and disputes.

Who sends an entry back, by when, and what the originator may do next.

Updated September 13, 2026 · 15 primary sources

The short answer

An ACH return is an entry the receiver's bank sends back, with a reason code.
Most returns are due by the second banking day; unauthorized consumer debits get 60 days.
A reversal is the originator's fix for specific errors, within five banking days.
Timely unauthorized returns are final; they cannot be contested through the ACH network.

The path back

How an ACH return moves

The RDFI decides: The receiver's bank may return entries it cannot process, with an R code.
Back to the ODFI: The return entry is routed to the bank that sent the original.
Same entry, new routing: Fields stay as originally sent, except routing, trace number and transaction code.
Code in the addenda: A 7 record with addenda type 99 carries the R code.
Same day is possible: Returns can use Same Day ACH windows, up to 4:45 p.m. ET.

How long banks have

Return deadlines: two days or sixty

Nacha counts from settlement. Your own bank sets an earlier reporting cutoff.

Return type	Codes	Deadline at the ODFI
Standard	Most codes, including R01-R04 and R29	Opening of business, second banking day after settlement
Extended, with signed customer statement	R05, R07, R10, R11	Opening of business, banking day after 60th calendar day
Suspected fraud	R17, marked QUESTIONABLE	Opening of business, second banking day after settlement
Improper reversal, consumer account	R11	Opening of business, banking day after 60th calendar day
Improper reversal, business account	R17	Opening of business, second banking day after settlement

Three different things

Return, reversal or dispute?

Action	Who starts it	Window	Allowed for
Return	Receiver's bank (RDFI)	2 banking days, or 60 days	Entries it cannot post, unauthorized or wrong
Reversal	Originator or ODFI	Within 5 banking days of settlement	Specific errors only
Request for return (R06)	ODFI	RDFI responds within 10 banking days	Any reason; the RDFI decides
Consumer error claim (Reg E)	Consumer, with their bank	Notice within 60 days of the statement	Unauthorized or incorrect transfers

Reversals

When a reversal is allowed

Five banking days: The reversal must reach the RDFI within five banking days of settlement.
Named errors only: Duplicates, wrong receiver, wrong amount, a debit dated early, a credit dated late.
Not for failure to fund: Nacha says failure to fund is not an error.
Format: Use REVERSAL as the description; keep SEC code, Company ID and amount identical.
Correcting file: A correcting file must go with a reversing file, unless it was a duplicate.
The RDFI may refuse: It may return a reversing entry, including for insufficient funds.

Retrying

What you may do after a return

Nacha prohibits resubmitting outside these cases, including by changing the entry's content.

Returned as	Retry allowed?	Conditions
R01 or R09	Yes, up to twice	Within 180 days; RETRY PYMT; same name, ID, amount
R08, payment stopped	Only if the receiver authorizes it	Authorization given after the stop payment
R03 or R04	After correcting the account data	Not treated as a reinitiation
R02, account closed	Not to that account	New authorization for another account
R11, error in authorized debit	Yes, once corrected	Within 60 days of the return; no new authorization
R05, R07, R10, R29	No	Only with a new authorization obtained after the return
Next debit in a recurring series	Not a retry	If it does not depend on the earlier return

Watch the totals

Return rates and change notices

Unauthorized: 0.5%: R05, R07, R10, R11, R29 and R51 returns, against debits originated.
Administrative: 3.0%: R02, R03 and R04 returns. Above it, Nacha may open an inquiry.
Overall: 15.0%: All debit returns. Exceeding it starts an inquiry, not an automatic violation.
Measurement period: The preceding 60 days or two calendar months.
Notification of change: In most cases, fix within six banking days or before the next entry, whichever is later.
Common change codes: C01 account number, C02 routing number, C05 transaction code; C03, C06, C07 combine them.

Customer disputes

Can a returned payment be disputed?

Timely returns are final: Stripe: disputes within the timeframes are final and uncontestable through the ACH network.
Recovery moves outside ACH: After a timely R10, East West Bank says no Nacha process remains to recover funds.
Goods and services: Nacha's unauthorized codes do not cover disputes about goods or services.
Proof of authorization: The ODFI has 10 banking days to provide requested proof or accept the return.
Refunds do not stop disputes: Stripe advises telling the customer about a refund so they do not also dispute.
The bank's investigation: Reg E: 10 business days, or up to 45 days with provisional credit.

Questions

What people ask about returns.

What is an ACH return?: An entry the receiver's bank sends back through the network, with an R code.
What is the difference between an ACH return and a reversal?: The receiver's bank sends returns. The originator sends reversals, for specific errors only.
How long does a bank have to return an ACH debit?: Two banking days for most codes; about 60 days for unauthorized consumer debits.
Can an ACH reversal be sent after five days?: No. It must reach the receiver's bank within five banking days of settlement.
What is an ACH dispute?: A customer's claim, through their bank, that a debit was unauthorized or wrong.
Can I retry a returned ACH payment?: R01 and R09 up to twice; R08 with the receiver's consent; corrected data errors.

Sources

Where every fact comes from.

Primary sources only. Rules change, so check the date above.

After the cart

Need this built or fixed?

Thirty minutes with the people who build it.

Book a 30-minute call Every guide