What an ACH withdrawal is
An ACH withdrawal is a payment that a company takes from your bank account through the ACH network. The company may only take it if you gave permission, called an authorization. To read the statement line and find out who took the money, see what an ACH withdrawal is.
Stop a payment before it happens
Follow these four steps, in this order. They come from the Consumer Financial Protection Bureau.
- Tell the company. Call the company and say you are taking away your permission for automatic payments. Then send it in writing and keep a copy.
- Tell your bank. Say you have revoked authorization for that company to take payments from your account. Your bank must then block future payments for that debit.
- Give a stop payment order. This tells the bank not to pay a specific payment. To stop the next one, give the order at least three business days before the payment is due.
- Watch your account. If a payment still goes through, tell your bank right away.
The CFPB publishes free sample letters for each step: one to the company, one to your bank, a stop payment order, and a notice of an unauthorized transfer. You can also make these letters here.
The deadlines that matter
| What you want to do | Deadline |
|---|---|
| Stop the next recurring payment | Tell your bank at least 3 business days before the scheduled date |
| Confirm a phone order in writing, if the bank asks | Within 14 days |
| Report a payment you did not authorize | Within 60 days of the statement that first shows it |
Banks generally charge a fee for a stop payment order. Ask your bank what it charges.
Get money back after an unauthorized withdrawal
If money has already left your account without your permission, act quickly.
- Call your bank and say the ACH debit was not authorized. Follow up in writing if the bank asks. It may require written confirmation within 10 business days.
- Sign the bank’s statement. For an unauthorized ACH debit, the bank asks you to sign a Written Statement of Unauthorized Debit. It can then return the payment to the company’s bank for up to 60 days after the payment.
- Wait for the result. The bank has 10 business days to investigate. If it needs longer, up to 45 days, it must put the money back in your account while it investigates. It may hold back up to $50. If the bank says no or charged you fees, see what to do if your bank says no.
- Revoke the authorization, if you ever gave one, so no more payments are taken.
There are two 60-day clocks. Under the ACH rules, your bank can return the payment for 60 days after it was taken. Under Regulation E, you have 60 days from the date the bank sent the statement that first shows it. If you miss that second deadline, you can lose the protection for later transfers. Do not wait for either one. Report it the day you see it.
Which kind of problem is it?
| Situation | What it is called | Return code the company sees |
|---|---|---|
| You never gave this company permission | Unauthorized | R10 |
| You gave permission, but the amount or date was wrong | Not in line with your authorization | R11 |
| You cancelled, and they took a payment anyway | Authorization revoked | R07 |
| You placed a stop payment on it | Payment stopped | R08 |
If you run a business and received one of these codes, look it up in the ACH return codes list.
These protections are for personal accounts. A business account is not covered by Regulation E, and its bank must return an unauthorized debit by the opening of business on the second banking day after it settled. If you run a business, check your account every day and ask your bank about an ACH debit block or filter.
What this does not cover
A complaint about the goods or the service is not an unauthorized payment. If you authorized the payment and are unhappy with what you received, the ACH return rules do not apply. Contact the company about it.
Common mistakes
- Only telling the company. Tell your bank as well. The bank can block the payments even if the company does nothing.
- Waiting. Every deadline here is short. Report a problem the day you see it.
- Closing the account to stop payments. A stop payment or a revoked authorization is simpler, and you may still owe the money.
- Calling Nacha. Nacha writes the rules but does not process payments and cannot see yours. Your bank is the place to go.