Learn how to reverse a direct deposit.
Once you've sent a direct deposit to your employee's financial institution, you can't stop it. But you may be able to reverse it. We explain below.
Before you reverse a direct deposit
You may be able to reverse a direct deposit if you meet the following criteria:
- It's less than 5 days past the settlement date (typically cheque date) of the transaction you want to reverse.
- The reason for the reversal is in compliance with ACH or EFT laws. Reasons can include duplicate payments, unintended or erroneous payment and/or the amount paid was significantly different than what was owed to the receiver of the payment.
- The total amount(s) to be reversed is more than $50.
- Reversals can only be processed for the full amount of the direct deposit. Partial amounts can't be reversed.
- The direct deposit isn't for a current employee.
Note: You must notify the recipients of the payment that it will be reversed when you submit the request.
Request a direct deposit reversal
Before you request a reversal. It's highly recommended that you have an updated, signed Direct Deposit Authorization form on file from all your current employees.
If you satisfy the criteria above to fill out a reversal.
- Open the Direct Deposit Reversal Form.
- Click New Request.
- Fill out the required information and the transaction you want to reverse and then click Save. You'll receive an email confirmation that the request has been submitted.
- Intuit will review your request for accuracy and ensure all reversal transactions abide by applicable rules. If any transaction is inaccurate or doesn't abide by the rules, you'll receive an email that the request has been rejected along with a list of transactions to be fixed. Once you save the changes, we'll review the request again. An agent may contact you to assist you in more complex situations.
- Once Intuit has accepted the request, you'll receive an email informing you of when the request will be processed and next steps.
After you submit your reversal
Follow up information you should know once you've submitted your reversal.
- Carefully review all emails sent to you for your request(s).
- Intuit can't guarantee the funds will be recovered.
- Due to the cost of processing a direct deposit reversal, we will not process any reversals that will have an accumulated total of less than $50.
- You'll be charged a direct deposit reversal fee ($75 per payroll), whether or not the funds are recovered.
- The reversal transaction takes 5 business days to process as it is processed via ACH which is not instantaneous and the bank has up to 5 banking days to reject the reversal debit.
- We will ask you to wait 3 banking days after the check date before processing reversals. We want to ensure that the direct deposit is not rejected by the receiving/employee or supplier's bank. If it's rejected by the receiving bank, there is no need for a reversal.
- Employees can dispute the reversal for up to 60 days. If the employee disputes the reversal and Intuit has already credited you those funds, we reserve the right to debit your company account for the disputed transactions.
- If the reversal is successful and there is no current balance due on your payroll account, your bank account will be credited when the funds have been reversed from the employee's account (usually 10 days).
- If the direct deposit reversal is not successful, you cannot void the pay cheque. Since the employee has received and still has the net pay, the gross wages are valid. The only way to get the money back at that point is to work directly with the employee.
- If the entire amount of the direct deposit isn't available in the employee's account, the reversal will be rejected, and no funds will be recovered.
- The Primary Principal will be notified by email about the success or failure of the reversal.
- Stopping payment on your company's payroll funds won't prevent the direct deposit from being credited to the employee's account if the funds have already been transmitted.
- If the direct deposit reversal is successful, or the employee arranges to give the net back, you'll need to void the pay cheque and payroll data with Intuit to complete the reversal.