February 12, 2025

Cancelling ACH payments: How to stop and reverse transfers

Automated Clearing House (ACH) payments are a fast, secure payment method. But what if you make a mistake like entering the wrong amount, sending a duplicate payment, or transferring funds to the wrong account?

If you act quickly, you may be able to stop an ACH payment before it clears. But if the transaction has already been processed, you’ll need to request an ACH reversal.

Let’s explore some scenarios where you would need to stop an ACH payment and look at how to stop ACH payments.

Reasons you might cancel or stop your ACH payment

Before we dive into the steps you would need to take to stop ACH payments, let’s first look at why you might need to. Here are a few common reasons why your business could need to stop ACH payments:

  • Unauthorized transactions: If a payment was made without your consent, it’s considered unauthorized and could be a sign of fraud
  • Payment errors: Overcharges, duplicate invoice payments, or incorrect amounts can result from system errors or manual entry mistakes
  • Incorrect account details: If a payment was sent to the wrong account due to incorrect routing or account numbers, the bank may be able to trace and recover the funds—if the mistake is caught early
  • Changes to an agreement: If you cancel a service, end a subscription, or adjust a payment schedule, you’ll need to stop any associated ACH payments before they’re processed

These are just a few examples. The following steps for stopping an ACH payment will be the same no matter why you need to do it.

How to stop an ACH payment before it’s processed

If you need to stop an ACH payment, it’s important to act quickly to avoid any financial complications. Fortunately, it’s a simple two-step process:

1. Identify the payment

Pinpoint the exact ACH transaction you want to stop. Gather key details, including the payment amount, recipient, and scheduled date. Having this information ready helps ensure a smooth process when contacting your bank.

2. Notify your bank

Reach out to your bank or credit union and request a stop payment. Provide all relevant transaction details.

Most banks require these requests at least three business days before the scheduled payment date. If the payment has already begun processing, stopping it may no longer be possible.

Note that many banks charge a fee to stop an ACH payment. These fees typically range from $15 to $35, depending on the financial institution’s policies and the payment method.

Can an ACH payment be reversed after it’s processed?

In many cases, yes, an ACH payment can be reversed after it’s been processed—but timing is critical. Since ACH transfers take time to settle, there is a short window for requesting a reversal.

Let’s look at the circumstances where you could qualify for an ACH reversal and go over how you can request one.

ACH reversal requirements

Nacha, the organization overseeing ACH payments, allows reversals only in specific cases. These are the four circumstances when your ACH payment could qualify for reversal:

  • It was processed twice (duplicate payment)
  • The amount was incorrect
  • It was sent to the wrong account
  • It was processed on the wrong date

If the payment meets any of these conditions, you can submit a reversal request. Here’s how to proceed based on the type of error:

Duplicate payments or incorrect amounts

First, contact the recipient and request a refund. Many vendors will correct the issue directly. If that’s not an option, your bank can initiate a credit reversal request to recover the funds.

Wrong account details or incorrect date

If funds were sent to the wrong account or processed on the wrong date, ask your bank to initiate an ACH trace request. This process tracks the funds using a unique trace number. If the recipient hasn't withdrawn the money, the funds may still be recoverable.

But if the funds have already been accessed, retrieval becomes more complex and may require legal action.

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How online and offline cancellations impact ACH payments processing

Making a request to stop ACH payments online via your bank’s website or app may be your first thought because that’s often the most convenient way to do things. But you may wonder if it could benefit you to make your ACH cancellation request offline via a phone call or bank visit instead.

Let’s look at a few ways online and offline ACH cancellation requests differ so you can choose the right method for your situation:

Criteria

Online cancellation

Offline cancellation

Availability

24/7 via bank website or app

Limited to bank hours or automated phone systems

Speed

Instant confirmation

Processing delays possible, especially during peak hours

Documentation

Automatic timestamps and records

Requires manual tracking of details

Complexity

Best for standard requests

Best for handling disputes or unauthorized transactions

Here are a few factors you can consider when deciding whether online or offline ACH cancellation would be a better method for your situation:

  • Urgency: Online methods are generally more efficient if you need to cancel an ACH payment immediately
  • Complexity: Consider using offline methods for personalized assistance for complicated situations such as unauthorized transactions or disputes
  • Bank policies: Always check your bank's specific policies regarding cancellation methods for ACH payments, as some institutions may have different procedures or requirements

Whether you choose to stop ACH payments online or offline, you’ll follow the same two-step process described earlier and will need to provide the same information with your request.

Make your ACH payments with Ramp

ACH payments can be a secure, convenient way for your accounts payable team to pay your company’s vendors, but mistakes happen. Knowing how and when you can stop ACH payments as well as which methods to use in what circumstances can make the process go much more smoothly.

If you automate your AP process with Ramp, you’ll always stay informed about your ACH payment statuses, ensuring fast transactions. That’s because Ramp Bill Pay allows you to:

  • Receive error alerts: Automated 2-way and 3-way matching catches errors like overbilling and duplicate invoices and alerts you
  • Send same-day ACH: You’ll have the option to make same-day ACH payments when time is of the essence
  • Reduce data entry time: Scan or upload documents including invoices, purchase orders, and vendor onboarding information rather than manually entering them
  • Secure your payments: All ACH payments made through the platform are compliant with NACHA standards
  • Automate approval workflows: You’ll be able to set automated approval chains to prevent the confusion and slowdowns of manual approvals

How else could automating your AP with Ramp Bill Pay save your business time and money? Check out a demo and find out.

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Ashley NguyenContent Strategist, Ramp
Ashley is a Content Strategist and Marketer at Ramp. Prior to Ramp, she led B2C growth strategies at Search Nurture, Roku, and TikTok. Ashley holds a B.S. in Managerial Economics from the University of California, Davis.
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