ACH Reversal
A request to reverse an ACH transaction that was sent in error or contained incorrect account information, subject to strict time limits.
Also known as: ACH reversal fraud, ACH return
Last reviewed: 10 June 2026
An ACH reversal is a corrective transaction that cancels a previous ACH entry. Under Nacha rules, reversals must be submitted within five banking days of the settlement date and are only permitted for specific reasons: duplicate entries, incorrect dollar amounts, or wrong account/routing numbers.
Scammers exploit ACH reversals through overpayment schemes: they send a fraudulent ACH payment (often using stolen account credentials), ask the victim to wire back the 'overpaid' amount, then initiate a reversal on the original ACH, leaving the victim out of pocket for whatever they wired back.
If someone pays you via ACH and immediately asks for a partial refund by a different method, treat it as a major red flag. Always wait for an ACH deposit to fully clear and confirm its legitimacy with your bank before releasing any goods or sending money back.
Examples
- A seller receives an ACH payment for more than the agreed price and is asked to wire back the difference. Days later the ACH is reversed, leaving the seller having lost both the goods and the wired refund.