Refunds for ACH Payments

Question

How do refunds for ACH payments work?

Answer

  • ACH refunds must be initiated within 90 days after the original payment.

  • Refunds for ACH payments take longer to process: between 4-5 business days.

  • These refunds will be processed as credits with either a “PPD” or “CCD” label on the statement.

  • A refund can only be processed after the payment process has completed. For example, if a refund is initiated immediately after a payment is made, there will be a 4-5 business day delay for the charge to process first, then another 4-5 business days for the refund transfer process.