A Direct Debit reversal takes place when a customer disputes a payment and the money is returned back into their account.
Unlike an ‘insufficient funds’ or ‘account closed’ bounceback, a Direct Debit reversal can only take place after a transaction has already occurred.
Can a direct debit be reversed?
A direct debit can also be reversed when there are insufficient funds in the customer’s account. When a direct debit is reversed, you receive notice in the Payment Events Report. Look for events labeled Reversal.
What does it mean when it says reversal on a bank statement?
A payment reversal is when the funds a cardholder used in a transaction are returned to the cardholder’s bank. This can be initiated by the cardholder, the merchant, the issuing bank, the acquiring bank, or the card association. Common reasons why payment reversals occur: The item ended up being sold out.
What does it mean when a payment is reversed?
A payment reversal is when a transaction paid to you is returned to the buyer. This typically happens after a chargeback or having lost a dispute with a customer (i.e. a lost PayPal claim). In this situation, it is common to want to reverse the actions that a transaction triggered when it was originally received.
What does EFT debit reversal mean?
Consumers can reverse a debit card purchase for several reasons as long as their bank agrees to the reversal. Debit reversal funding refers to having the funds available to cover reversed debit transactions, including any administration fees the payment processor charges reversed transactions.