Understanding Automatically Refunded Transactions

When you see a refunded or reversed transaction in your system, it can happen for several reasons. Understanding why these reversals occur can help you assist donors in completing their transactions successfully.

Why ACH Transactions Get Automatically Refunded

ACH (bank transfer) payments can be automatically reversed by the system when the donor's bank rejects the transaction. The most common reason for this is when the bank account number was entered incorrectly during the donation process.

Here's what happens:

1. The payment initially goes through and appears as successful

2. A few days later, the donor's bank rejects the transaction due to incorrect account information

3. The system automatically reverses the transaction, showing it as a refund

4. No manual refund was processed - this is an automatic system response

How to Resolve the Issue

When an ACH transaction is automatically refunded due to incorrect bank information, the donor will need to:

• Re-enter their correct bank account information

• Submit their donation again with the accurate details

You can reach out to the donor to let them know what happened and guide them through making a new donation with the correct bank account information.