Reimbursements
There are two types of reimbursements for the payout flow: Recalls and Returns. Learn how each one operates.
Return
Return is the flow that occurs after a payout is completed; however, because the ACH domestic network is asynchronous, the beneficiary bank rejects the payment T+x days later. In consequence, the total amount of the transaction plus any applicable taxes and fees will be credited back.
Return flow

- Merchant creates a new payout.
- Localpayment transfers the funds to the beneficiary's account.
- The payout status changes to
Completed
. - The beneficiary’s financial institution requests the return of funds to the merchant’s account due to an internal error.
- Localpayment returns the funds to the merchant’s account, the payout status changes to
Returned
. and the Merchant is notified.
Recall
Recall is the process of recovering a payout when the incorrect beneficiary wire information was provided by the merchant.
Recall Flow

- Merchant creates a new payout.
- Localpayment transfers the funds to the beneficiary's account.
- The payout status changes to
Completed
. - The merchant requests the return of funds by email to the operations team and shares all the necessary documentation.
Important
- We do not guarantee the recovery of the funds.
- The beneficiary's bank is responsible for determining whether or not to generate the recall.
Updated 3 months ago