What is a payment reversal?

A payment reversal refers to the process of canceling or reversing a payment made from one account to another. This can occur for various reasons, such as fraud, errors in the payment process, or disputes between parties. Payment reversals can be initiated by the payer, the receiver, or by the financial institution where the accounts are held. In many cases, payment reversal requests must be made within a certain time frame and may involve fees or penalties. If a payment is reversed, any associated fees or charges will be refunded, and the transaction will be removed from the account's transaction history.