ACH payments are a quiet workhorse of everyday banking in the United States. They power direct deposit paychecks, automatic rent payments, utility bills, subscription fees, and more. Behind the scenes, these transactions move through the Automated Clearing House (ACH) network, which allows banks to send money electronically between accounts.
Most of the time, ACH payments work smoothly. But every now and then, something goes wrong—maybe the wrong amount comes out, a payment hits the wrong account, or a charge you thought you canceled keeps showing up. When that happens, knowing your options can save you time, money, and stress.
Let’s break down when ACH payments can be reversed, how to stop future payments, and what to do if fraud or errors show up.
Can an ACH Payment Be Reversed?
Yes—but only in very specific situations.
ACH transfers are governed by rules set by NACHA (the organization that oversees the ACH network). Under those rules, banks are allowed to reverse a completed ACH payment only if one of these errors occurred:
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The wrong dollar amount was sent (for example, $500 instead of $50)
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The payment went to or came from the wrong bank account
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The same payment was processed more than once
If one of these mistakes happened, the bank that sent the payment must initiate the reversal. The correction generally needs to happen within five business days, and all affected account holders must be notified.
Important: The person or company that sent the payment must request the reversal. The recipient cannot initiate it.
Outside of these narrow cases, ACH payments usually can’t be “undone” once they’ve been processed.
How to Stop an ACH Payment Before It Happens
If you previously gave a company permission to pull money from your bank account—like a gym membership or streaming service—you have the legal right to withdraw that permission.
Here’s how to do it properly:
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Contact the company directly
Tell them you’re canceling authorization for future automatic withdrawals. Do this by phone, email, or letter, and keep records. -
Notify your bank or credit union in writing
Even if you call your bank, follow up with a written request. This gives you stronger legal protection. -
Act early
To be safe, contact your bank at least three business days before the scheduled payment date.
Banks usually charge a small fee for a stop-payment order. Also, keep in mind: stopping a payment at the bank does not cancel your contract with the company. You still need to officially cancel the service to avoid collections or penalties.
Afterward, monitor your account closely. If a charge goes through after you revoked authorization, dispute it immediately.
Changing or Adjusting Online Bill Payments
Not all ACH payments are set up the same way. How you fix or change one depends on who created it:
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If the company pulls money automatically (like an electric bill or insurance payment), contact the biller directly.
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If you scheduled the payment through your bank’s bill pay system, log in to your bank account or call customer service to edit or cancel it.
Timing matters. The earlier you request a change, the better your chances of preventing the payment from going through.
If you don’t trust a biller to honor your request, your bank may be able to step in with extra safeguards.
Updating Direct Deposit Information
Switching bank accounts? You’ll need to update your direct deposit.
Reach out to the employer, government agency, or company that sends you money and provide:
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Your new bank’s routing number
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Your new account number
Ask them to remove your old banking details to prevent future deposits from going to the wrong place. Making this change early helps avoid missed paychecks or delays.
What to Do If You Spot Fraud or an Error
Federal law offers strong protections for consumers—but only if you act quickly.
If you notice an unauthorized ACH withdrawal or a clear mistake:
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Contact your bank immediately (within two days is ideal)
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Review your bank statements regularly
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File a written dispute if required
If you wait more than 60 days after the bank statement is issued, you may lose some or all of your protections and could be responsible for the loss.
Business owners should be extra cautious. Consumer protections generally don’t apply to business accounts. Many banks offer tools like ACH Blocks or ACH Filters to reduce fraud risk—worth asking about if you run a business.
ACH Payments vs. Wire Transfers
ACH payments and wire transfers may both move money electronically, but they work very differently.
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ACH payments
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Usually take one to two business days
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Can sometimes be corrected if errors occur
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Common for payroll and bills
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Wire transfers
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Typically processed the same day
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Funds are often available immediately
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Almost never reversible once sent
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Because wire transfers move so fast, recovering money sent in error is much harder.
Frequently Asked Questions
How long does an ACH payment take to process?
ACH payments may clear the same day or within one to two business days, depending on how the payment was set up.
What information is needed to make an ACH payment?
You typically need only a bank routing number and account number. Some companies also ask for a voided check to confirm the details.
Please take a look at this as well:
What Open Banking Is and How It Can Change the Way You Use Money
