What is the difference between a returned and reversed transaction?

Simply explained, the difference between a returned transaction and a reversed transaction is when the transaction is stopped.

A returned transaction happens after the funds have already reached the recipient's account. In this case, the recipient (or their bank) must actively return the money to you.

A reversed transaction is one that’s cancelled before it’s fully processed, meaning the funds never reach the recipient’s account. The money is returned to you while the transaction is still being processed.

There are many possible reasons for a reversal. We recommend contacting the recipient or their bank if you need more details.