What is an ACH reversal or chargeback?
An ACH reversal happens when your bank returns a transfer after it was initiated. There are two scenarios:
- Before settlement — the bank rejects the deposit before funds clear. This is simpler: the deposit doesn't complete, and Bitcoin is not purchased.
- After settlement (chargeback) — the bank pulls back funds after they already settled and Bitcoin may have already been purchased. This is more complex and triggers a recovery process.
Why would an ACH be reversed?
Common reasons include:
- Insufficient or uncollected funds in your bank account
- Closed, invalid, or unable-to-locate bank account
- Incorrect bank account details
- Your bank or a claim that the transfer was not authorized
What happens if my ACH fails before Bitcoin is purchased?
The deposit is not completed and no Bitcoin is purchased. Depending on the return reason, Swan may allow a retry or require a different payment method. If your bank account is closed, invalid, or cannot be located, Swan may remove that payment method to prevent future failures.
What happens if my ACH is reversed after Bitcoin was already purchased?
Swan must recover the funds returned by the bank. Bitcoin purchased using the reversed deposit may be sold to recover the reversed dollar amount.
Swan must recover the funds returned by the bank. Bitcoin purchased using the reversed deposit may be sold to recover the reversed dollar amount.
This process is called chargeback remediation and is disclosed in Swan's user agreements.
Could more Bitcoin than I purchased be sold?
Could more Bitcoin than I purchased be sold?
Possibly, if there is a shortfall. Here's how recovery works:
- Bitcoin from the trades funded by the reversed deposit is sold first.
- If the sale proceeds are less than the reversed amount (a deficit), Swan may use your available USD balance, cancel any open limit orders, or sell additional Bitcoin to cover the difference.
- If the sale produces more than the reversed amount (a surplus), the excess is credited back to your account ledger.
What if I did not authorize the ACH?
Contact Swan Support immediately at swan.com/support. Do not retry the same ACH while the issue is under review. Swan will review authorization records and may route the matter to our Risk team. Unauthorized ACH claims may trigger a fraud review.
Can a reversed ACH affect my linked bank account?
Yes. Repeated ACH reversals can result in your bank being restricted by our banking partners. If this happens:
Can a reversed ACH affect my linked bank account?
Yes. Repeated ACH reversals can result in your bank being restricted by our banking partners. If this happens:
- Future deposits from that bank may fail
- Recurring purchases may pause
- You may need to add a new bank account to continue using Swan