Returns & Reversals

ACH Returns

Lead Bank partners and Receiving Depository Financial Institutions (RDFIs) may return ACH entries for any valid reason. A table of return codes available via API can be found below. Returns generally must be submitted so they are available to the Originating Depository Financial Institution (ODFI) by the opening of business on the second banking day following the original settlement date. In cases involving unauthorized transactions, RDFIs must provide a signed Written Statement of Unauthorized Debit (WSUD). These returns must be submitted so they are available by the opening of business on the 60th calendar day following the original settlement date. WSUDs must be obtained before initiating the return and retained for at least one year from the settlement date. Returns may be submitted on an ACH that is currently in pending status. However, the return will not be fully processed and sent to the Fed until the original ACH has successfully transitioned to posted.

Return Codes

A complete list of return codes is available in the Nacha Operating Rules and Guidelines.

Code	Description	Timing	WSUD Required
R01	Insufficient Funds	2 Banking Days	No
R02	Account Closed	2 Banking Days	No
R03	No Account / Unable to Locate Account	2 Banking Days	No
R07	Authorization Revoked by Customer	60 Calendar Days	Yes
R08	Payment Stopped	2 Banking Days	No
R09	Uncollected Funds	2 Banking Days	No
R10	Customer Advises Originator is Not Known/Not Authorized	60 Calendar Days	Yes
R11	Authorization Revoked / Improperly Initiated Reversal	60 Calendar Days	Yes
R14	Representative Payee Deceased/Unable to Continue	2 Banking Days	No
R16	Account Frozen / Entry Returned per OFAC	2 Banking Days	No
R22	Invalid Individual ID Number	2 Banking Days	No
R23	Credit Entry Refused by Receiver	2 Banking Days	No
R29	Corporate Customer Advises Not Authorized	2 Banking Days	No
R61	Misrouted return	5 Banking Days (from return settlement)	No
R62	Return of erroneous or reversing debit	5 Banking Days (from return settlement)	No
R67	Duplicate return	5 Banking Days (from return settlement)	No
R68	Untimely return	5 Banking Days (from return settlement)	No
R69	Field error(s)	5 Banking Days (from return settlement)	No
R70	Permissible return entry not accepted / Return not requested by ODFI	5 Banking Days (from return settlement)	No
R71	Misrouted dishonored return	2 Banking Days (from dishonor settlement)	No
R72	Untimely dishonored return	2 Banking Days (from dishonor settlement)	No
R73	Timely original return	2 Banking Days (from dishonor settlement)	No
R74	Corrected return	2 Banking Days (from dishonor settlement)	No
R75	Return not a duplicate	2 Banking Days (from dishonor settlement)	No
R76	No errors found	2 Banking Days (from dishonor settlement)	No
R77	Non-acceptance of R62 dishonored return	2 Banking Days (from dishonor settlement)	No

Return Submission Timing

Returns should be submitted promptly to ensure timely processing. ACH returns submitted outside the recommended windows may require manual intervention and could become untimely.

Examples

Return of Debit Entry Received on Monday

Event	Day	Deadline
Incoming Debit Entry	Monday	Settlement
Recommended Return Cutoff	Tuesday by 6:30 PM CT	1st banking day
Final Return Cutoff	Tuesday by 10:00 PM CT	2nd banking day
Untimely Return	Tuesday after 10:00 PM CT	Rejected by Lead

Return of Debit Entry Received on Thursday (non-holiday week)

Event	Day	Deadline
Incoming Debit Entry	Thursday	Settlement
Recommended Return Cutoff	Friday by 6:30 PM CT	1st banking day
Final Return Cutoff	Sunday by 10:00 PM CT	2nd banking day
Untimely Return	Sunday after 10:00 PM CT	Rejected by Lead

Return of Debit Entry Received on Friday (non-holiday week)

Event	Day	Deadline
Incoming Debit Entry	Friday	Settlement
Recommended Return Cutoff	Monday by 6:30 PM CT	1st banking day
Final Return Cutoff	Monday by 10:00 PM CT	2nd banking day
Untimely Return	Monday after 10:00 PM CT	Rejected by Lead

Late Returns

Nacha Operating Rules require ACH Originators to maintain Proof of Authorization for two years following the settlement date of the last debit to support potential Late Returns. If you suspect an unauthorized transaction after the standard return window has passed, contact Lead Bank promptly. You must provide documentation proving the authorization is invalid. Lead Bank will review the request and, if appropriate, request permission for a Late Return from the ODFI.

Return vs. Reversal

Example	ODFI	RDFI	Action
You accidentally duplicated push. Needs to get funds back for the second one.	Lead (ACH Credit, push)	External Bank	Reversal (you must perform within five business days)
You receive an ACH credit that you do not recognize (you suspect fraud and want to send back).	External Bank (ACH Credit, push)	Lead	Return
You regularly initiate ACH debits from a counterparty. One transaction was a mistake, so you need to send funds back for that transaction.	Lead (ACH Debit, pull)	External Bank	Reversal (you must perform within five business days)
You previously authorized ACH debits to allow funds to be pulled from your Lead account by a service provider. You suspect the latest pull was in error, as you think they cancelled the service for which it pays.	External Bank (ACH Debit, pull)	Lead	Return

Reversal FAQs

ReversalsA reversal is treated as two separate ACH transactions. The ACH object for the original entry will be enriched with additional data to include the reversal ACH transaction

What changes happen in the original ACH when a reversal is created?

Lead annotates the original ACH in the reversal hash — providing a link to the new reversal.

Do webhooks trigger for the original ACH when reversals are created?

No.

Inside the original ACH there is a reversal object — is this object updated with the reversal reason and id?

Yes, the reversal object of the original ACH will be updated with the reversal reason and corresponding id.

Do ACH reversals behave like an ordinary ACH with the same statuses?

Yes, ACH reversals behave like ordinary ACH transactions with the same statuses:scheduled, processing, submitted, posted, canceled, under_review, approved, rejected, pending_return, returned

Can a reversal be returned?

Yes, reversals can be returned.

Foundations

API Guides

ACH Returns

Return Codes

Return Submission Timing

Examples

Late Returns

Return vs. Reversal

Reversal FAQs

​ACH Returns

​Return Codes

​Return Submission Timing

​Examples

​Late Returns

​Return vs. Reversal

​Reversal FAQs

ACH Returns

Return Codes

Return Submission Timing

Examples

Late Returns

Return vs. Reversal

Reversal FAQs