ACH Pull is restricted across HIFI and a Developer must enter into an additional agreement to enable ACH Pull.
Key Differences
| ACH Debit Return | ACH Credit Return | Reversal | |
|---|---|---|---|
| Initiated by | Receiver | Sender | Originator |
| Type | Return | Recall | Correction entry |
| Processing | Automatic | Manual | New ACH entry |
| Timing | 2 days / 60 days | No guarantee | ≤5 days |
| Funds movement | Forced return | Requires approval | Requires acceptance |
| Risk holder | Client (originator) | Sender | Originator |
| Control | Monitoring | Debit blocks | Debit blocks |
ACH Debit (Pull Payments) Disputes
Overview
Disputes are initiated by the Receiver and processed through the ACH network as returns.Common Reasons (Return Codes)
- Unauthorized Return codes (R05, R07, R10, R11, R29)
- Insufficient Funds Return code (R01)
- Invalid / Closed Account Return code (R02,R03,R04)
Timeframes
- Standard: 2 business days
- Unauthorized (consumer): up to 60 days
Handling
- Returns are automatically processed by the network
- Funds are debited from our account
- Client balances may go negative → covered by reserves
Controls
- Internal Return rate monitoring thresholds (originator-level):
- Unauthorized: 0.20%
- Administrative: 2%
- Overall: 10%
- Breaches may trigger restrictions or suspension
Risk
- Sits with the client (originator)
- Mitigated via reserves and internal monitoring
ACH Credit (Push Payments) Disputes
Overview
Disputes are initiated by the Sender after funds have settled. Credits cannot be automatically reversed.Handling
- Recall request received via our sponsor bank
- Review:
- Funds availability
- Fraud / error context
- Client notified (if applicable)
- Decision:
- Funds available → return processed
- Funds unavailable → denied
- Respond to bank
Controls (Critical)
- Debit blocks are in place, a manual review is conducted prior to returns being refunded.
- Originators cannot pull funds back unilaterally
- All returns require our review + approval
Timing
- No guaranteed SLA (bank + client dependent)
Risk
- Sits with the sender
ACH Reversals (Correction Entries)
Overview
Reversals are new ACH entries sent by the originator to correct an error — they are not the same as returns or recalls.When Reversals Are Allowed
- Duplicate payment
- Incorrect amount
- Wrong account
Timeframe
- Must be initiated within a 5-day window from the original transaction
Key Behavior
- Reversals are not guaranteed to succeed
- They are subject to:
- Receiving bank controls
- Account-level restrictions
Our Controls
- Debit blocks prevent automatic reversal debits
- Reversals cannot be forced into our accounts
- Any reversal requires:
- Bank coordination
- Internal review and approval
Important Note
If a reversal is attempted against a blocked account:
- It will fail
- Originator must submit a formal recall request instead