ACH Refund

An ACH Refund transaction returns funds to a customer's bank account by reversing a previously settled ACH Sale transaction.

Key Requirements

The original ACH Sale transaction must be settled before a refund can be processed
Settlement typically occurs 1-3 business days after the original transaction
Refunds cannot exceed the original transaction amount

Important: Unlike card transactions, ACH transactions cannot be voided. If you need to cancel an ACH transaction before settlement, you must wait for it to settle and then issue a refund.

Endpoint

POST /v1/transactions

Request Format

{
  "type": "refund",
  "transactionId": "txn_original_sale_id",
  "amount": 5000,
  "currency": "USD"
}

Request Fields

Field	Type	Required	Description
`type`	string	Yes	Must be `"refund"`
`transactionId`	string	Yes	ID of the original settled ACH Sale transaction
`amount`	integer	No	Refund amount in cents. If not specified, refunds the full amount.
`currency`	string	Yes	Must be `"USD"`

Full Refund Example

Refund the entire amount of the original transaction:

{
  "type": "refund",
  "transactionId": "txn_01abc123def456",
  "currency": "USD"
}

Partial Refund Example

Refund a portion of the original transaction:

{
  "type": "refund",
  "transactionId": "txn_01abc123def456",
  "amount": 2500,
  "currency": "USD"
}

Response Format

{
  "id": "txn_refund_xyz789",
  "type": "refund",
  "amount": 5000,
  "fee": 0,
  "currency": "USD",
  "merchantId": "mid_abc123",
  "transactionId": "txn_01abc123def456",
  "authorization": {
    "status": "P",
    "processorCode": "00",
    "processorMessage": "ACH refund submitted",
    "approvedAmount": 0
  },
  "payment": {
    "type": "personalChecking",
    "last4": "6789",
    "bin": "987654321"
  },
  "processor": {
    "id": "pfmCon_xyz789",
    "name": "Payrix",
    "routingSource": "plan"
  },
  "createdOn": "2024-01-18T14:30:00Z"
}

Transaction Statuses

Status	Code	Description
Pending	`P`	Refund submitted to ACH network
Approved	`A`	Refund successfully processed, funds returned
Declined	`D`	Refund was declined
Error	`E`	An error occurred

Timing Considerations

Settlement Timeline

Day 1: Original ACH Sale submitted (status: Pending)
Day 2-3: ACH network processes the sale
Day 3-4: Sale settles (status: Approved)
Day 4+: Refund can now be submitted

Refund submitted: (status: Pending)
1-3 days later: Refund settles (status: Approved)

When to Use Refund vs. Void

Scenario	Action
Transaction is pending	Wait for settlement, then refund
Transaction is settled	Submit a refund
Need immediate reversal	Not possible with ACH - must wait for settlement

Note: ACH does not support void transactions. The error "Void is not supported for ACH transactions" will be returned if attempted.

Multiple Partial Refunds

You can issue multiple partial refunds against a single transaction, as long as the total refunded amount does not exceed the original transaction amount.

Example: Original sale of $100.00

Refund 1: $25.00 ✓
Refund 2: $30.00 ✓
Refund 3: $50.00 ✗ (exceeds remaining $45.00)
Refund 3: $45.00 ✓

Error Messages

These are Preczn API errors returned when a request fails validation or processing. The error and message fields correspond to the API response format documented in the ACH Error Reference.

Refund Errors

Error	Message	Cause	Solution
Not Found	`Transaction Id Not Found`	Invalid `transactionId`	Verify the transaction ID is correct
Bad Request	`Amount to refund should be equal or less than the original transaction`	Refund amount exceeds original or remaining balance	Reduce the refund amount
Bad Request	`Transaction type does not support refund`	Original transaction type doesn't support refunds	Only `sale` transactions can be refunded

For a complete list of errors, see the ACH Error Reference.

Webhooks

Subscribe to webhook events to track refund status:

Event	Description
`transaction.pending`	Refund submitted to ACH network
`transaction.approved`	Refund settled, funds returned to customer
`transaction.declined`	Refund was declined
`transaction.errored`	An error occurred

Best Practices

Wait for settlement - Always verify the original transaction has settled before attempting a refund
Track refund totals - Keep track of partial refunds to avoid exceeding the original amount
Use webhooks - Monitor refund status via webhooks rather than polling
Communicate with customers - Set expectations that ACH refunds take 1-3 business days