A guide on bank reversals.

May 14 2020 | PayPal Editorial Staff

Bank reversals happen when your buyer files a complaint with their bank. Learn what you need to do when a bank reversal has been filed against you.
A bank reversal, sometimes called an ACH return, is when PayPal receives a request to return funds for a transaction that was funded by a bank account. This request might come from the buyer or the bank itself. Usually this request is filed because of suspected unauthorized use of a bank account.
 
Why might a bank reversal occur?
A reversal may occur if a buyer or their bank suspects or discovers that someone has accessed the buyer’s account or financial information without their permission. The following events may trigger a reversal:
  • The buyer's bank account was used without their permission to purchase an item fraudulently.
  • The buyer does not recognize the transaction.
  • The item that was purchased didn’t arrive.
  • The buyer was charged twice for the same item.

How will you know if a bank reversal has been filed against you?
As soon as PayPal is notified of the reversal, we’ll send you an email to alert you about it. A reversal case will also be filed in the Resolution Center.
 
How to respond to a bank reversal.
To respond to a reversal:
  1. Log in to your PayPal account.
  2. Go to the Resolution Center.
  3. Click Resolve under Action next to your case.
  4. Select how you would like to respond and click Continue.
The next steps will depend on how you choose to respond. You’ll be instructed about any additional information you need to provide that can help PayPal resolve your case, such as entering a transaction ID to prove that a refund has been issued or adding context for accepting the liability. In some instances, you may not be liable for the reversal.
 
Note that once a reversal has been filed, please refer to the email on the number of days you have to respond. Based on the situation, the response time frame is between 7 and 10 days.
 
How can you help prevent a bank reversal in the future?
The best way to help prevent a bank reversal is to follow security guidelines and review orders for fraud.
The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.

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