Payment reversed | Payment canceled/undone
This status indicates the system reversed the payment, undoing the original transaction outcome through a corrective or cancellation process.
What This Code Means
“Payment reversed” indicates that a payment previously initiated or posted was subsequently undone through a reversal mechanism. Reversals can occur when a transaction fails after partial processing, when duplicates are detected, when settlement cannot be finalized, or when a corrective action is required to restore consistency. A reversal is not the same as a decline; declines generally happen before approval. A reversal indicates the transaction entered processing and then a compensating action was applied. This status does not automatically specify timing for balance updates; it indicates the payment was not retained as a final successful transaction.
Where Users Usually See This Code
- Transaction history showing a payment followed by a reversal entry
- Merchant or processor reporting with “reversed/voided” outcomes
- Bank app notifications referencing reversed payments or adjusted balances
Why This Code Appears
- Posting or settlement could not be finalized
- Duplicate processing was detected and corrected
- A downstream rejection occurred after initial authorization
- Internal reconciliation required a compensating reversal
What Typically Happens Next
- The payment is marked as reversed/voided in transaction history
- Any holds may be released according to system timing rules
- The balance impact is adjusted to reflect the reversal outcome
What This Code Is Not
- It is not a simple “payment declined” outcome
- It is not confirmation of immediate funds availability in all cases
- It is not, by itself, evidence of wrongdoing or fraud
Troubleshooting Checklist
- □ Review transaction history for the reversal entry and any associated reference identifiers
- □ Confirm whether the original payment remains in a pending state or is replaced by the reversal record
- □ Avoid repeating the same payment until the reversal reaches a final recorded state if duplication risk exists
- □ Contact official support if the reversal is unexpected or leaves uncertainty about final balances
Notes And Edge Cases
Reversal records can appear as separate entries or as a status update on the original transaction, depending on platform design. Some systems show a pending reversal state before finalizing. Reversal timing can be influenced by settlement cycles, batch processing windows, and reconciliation file availability. In multi-party transactions, a reversal may be initiated by one system while another shows intermediate status until synchronization completes.
Related Codes
- 96 CodeSystem malfunction
- 91 CodeIssuer unavailable
- Payment declined CodePayment not approved
- Payment On Hold CodePayment paused for review
- ACH Reversed CodeACH entry reversed/adjusted
- ERR-REVERSAL CodeReversal required
- ERR-TXN-FAILED CodeTransaction failed
- Settlement Failed CodeSettlement did not complete