---
title: Returns and reversals
slug: concepts/returns-and-reversals
description: ACH payments can be returned if the RDFI cannot post them, or reversed by the ODFI to correct errors. Returns and reversals follow Nacha rules and timing requirements.
docTags: 
createdAt: 2025-08-14T07:45:09.098Z
---

## ACH returns and reversals

When an ACH payment cannot be accepted by the receiving financial institution, it is *returned* to the originator by the receiving bank (RDFI). If a payment has settled successfully but was sent in error, it can be *reversed* by the originating bank (ODFI). Both returns and reversals are governed by Nacha Operating Rules, which define when and how each may be used.

## Returns

A return occurs when the RDFI cannot post the entry to the receiver’s account. The typical flow is:

1. The Originator (sender) initiates an ACH payment.
2. The RDFI determines it cannot accept or post the payment (for example, account closed, invalid account, insufficient funds, or consumer claims the debit was unauthorized).
3. The RDFI sends the transaction back to the ODFI with a standard [Nacha return code](docId\:oDtRP7ARfnpQuFEGy4Sfh)  (R01–R85) identifying the reason.

You can use our [Returns](docId:7ji1ODgdnaKSdq88PIVDu) API to return a payment.

A Cross River Partner ID is associated with an *inbound* payment only after it has successfully posted to the receiver’s Cross River account. Therefore, you will not see inbound payments that fail posting for reasons such as an invalid routing number or an account restriction.

### Timing rules

- Many administrative or processing returns must be transmitted by midnight of the second banking day following settlement.
- Consumer unauthorized debit returns (for example, R10/R11) may be transmitted for up to 60 calendar days after settlement, provided the RDFI obtains a Written Statement of Unauthorized Debit (WSUD). RDFIs must return such items no later than the opening of the sixth banking day after completing WSUD review.

:::hint{type="info"}
## ACH return payment processing update

Effective Date: 9/29/26

This update improves ACH return timeframe validation for reversal payments.

- **Standard inbound payments:** Uses the payment's effective date (no change)
- **Inbound reversals:** Uses the payment's creation date (new behavior)

This ensures reversal returns follow the correct NACHA timeframe rules. No action is required; the system automatically applies the correct logic based on payment type.

**Technical details**

1. Inbound payment with description **"REVERSAL"** → uses Creation Date
2. All other inbound payments → uses Effective Date
:::

## Reversals

A reversal is an outbound entry initiated by the ODFI to correct an incorrect original entry. Examples of incorrect entries include:

- Duplicate entry
- Incorrect receiver account
- Incorrect amount
- Payment sent earlier than intended (for outbound pull debits)
- Payment sent later than intended (for outbound push credits)

When you initiate a reversal via API, you must supply the original payment ID and a reversal reason using the [Reversals](docId\:vzl0bctqLshMKGDQ13zjT) endpoint.

You can also [manage reversals](docId\:EI1pm4iL1sOOTT-7iX45N) using the COS Explorer interface.

### Nacha requirements

- A reversal must be originated within five banking days of the original entry’s settlement date.
- The originator must make a reasonable attempt to notify the receiver of the reversal and the reason no later than the reversal’s settlement date.
- Improper reversals may themselves be returned by the RDFI (for example, code R11— consumer, up to 60 days, code R17—non-consumer, within 2 banking days).
- Reversals are not guaranteed to recover funds. The RDFI may reject a reversal if the account is closed, lacks funds, or the receiver disputes.