Definition of a Preauthorized Debit Reversal

by Gwynita Leggington; Updated September 26, 2017

Many financial institutions complete preauthorized debit reversals for people on a daily basis. The process is fairly simple and customers are usually happy with the results. But what exactly is a preauthorized debit reversal? Read on to learn more about preauthorized debit reversals and how they can benefit you and your bank account.

Significance

Every day, people discover unauthorized debits on their bank statements. Dealing with fraudulent debits can be both frustrating and inconvenient for customers. Fortunately, there is a way to dispute such debits and get your money back. If a preauthorized debit is incorrect or invalid, then you can ask your financial institution to process a preauthorized debit reversal for that transaction. This is probably the fastest way to have your money credited back to your bank account.

Function

In order for your bank to process a preauthorized debit reversal, you must first inform your bank about the unauthorized debit and complete the necessary paperwork. Some financial institutions require customers to complete a notarized affidavit in order to dispute the debit. Other institutions may request a Written Statement Under Penalty of Perjury. Once you sign and date the proper form, you have given your financial institution permission to credit your account and reverse the payment that was sent to the payee.

Benefits

Many financial institutions work very quickly to process preauthorized debit reversals. In addition, you can usually begin the process online or over the telephone with your financial institution. Your bank may even fax, mail or email you the appropriate form to complete; or you may have the ability to download the form from your bank’s website.

Warning

Depending on your financial institution’s policies and procedures, it may take several days or even a week before your money is credited back to your bank account. Sometimes financial institutions give customers a provisional credit until they have had time to investigate the disputed transaction with that company. However, if the investigation shows that the preauthorized debit was valid, your financial institution may immediately reverse the provisional credit that was placed on your account.

Considerations

If you discover an unauthorized debit from your bank account, contact your financial institution as soon as possible to dispute the transaction. Many institutions require customers to dispute a transaction within 30 days of the date it occurred. So, if you wait too late, your bank may not have the ability to credit the money back to your account. Please keep in mind that your financial institution may not process a preauthorized debit reversal if that particular transaction is still pending and has not actually posted to your account.

About the Author

Gwynita Leggington has written and published articles since 2006. Her areas of expertise include health and wellness, education, careers, personal finance and dating. Leggington's work appears on eHow.com, Answerbag.com and Essortment.com. She holds a Bachelor of Arts in communications and a Master of Arts in counseling from Prairie View A&M University.