> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hifi.com/llms.txt
> Use this file to discover all available pages before exploring further.

# ACH Disputes

This section outlines how disputes are handled for ACH Debit (pull) and ACH Credit (push) transactions, as well as ACH Reversals.

> 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

1. Recall request received via our sponsor bank
2. Review:
   * Funds availability
   * Fraud / error context
3. Client notified (if applicable)
4. Decision:
   * Funds available → return processed
   * Funds unavailable → denied
5. 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