---
title: "What is the difference between a \"Returned\" ACH transfer and an ACH chargeback?"
description: Returned ACH transfers are ACH transfers that failed before settlement. ACH chargebacks are when an investor reports the transaction to their banking institution to say it was fraudulent or an unauthorized transaction.
---

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# What is the difference between a "Returned" ACH transfer and an ACH chargeback?

## Returned ACH transfers are ACH transfers that failed before settlement. ACH chargebacks are when an investor reports the transaction to their banking institution to say it was fraudulent or an unauthorized transaction.

Returned ACH transfers are ACH transfers that failed before settlement. This can be due to insufficient funds, closed bank account, invalid account number, etc.

ACH chargebacks are when an investor reports the transaction (that has been successfully completed and funds have settled) to their banking institution to say it was fraudulent or an unauthorized transaction. At that point, the banking institution pulls back the funds from our account on file. The amount of time for which a chargeback can occur is 60 days from the ACH submission date.

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