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What is a bank reversal?

A bank reversal, sometimes known as an ACH Return, is when PayPal receives a request to return funds for a transaction that was funded by a bank account. A request for a bank reversal can come from the buyer who holds the bank account or the bank itself. Usually, such a request is the result of suspected unauthorized use of a bank account.

When PayPal receives a bank reversal, we will open an investigation into the transaction and may request additional information from both the buyer and seller.

If the investigation finds the transaction was fraudulent, it will be reversed. Otherwise, it will be completed.
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