A payout reversal is an attempt by the sender or its provider to undo a payout that has already been issued. Common reasons are a duplicate payment, a wrong amount, payment to the wrong recipient, or the discovery that the payout was obtained by fraud. It is the outbound case of payment reversal.
Whether a reversal is possible depends on the rail and on timing. A payout that has not yet left the provider can simply be cancelled. On the United States ACH network, an ACH reversal may be sent within a few banking days for specified errors, but it succeeds only if the funds are still in the account. Instant transfers and card pushes are a push payment subject to irrevocability: the sender can only issue a payment recall asking the receiving bank to return the money, which needs the recipient's consent. Platforms therefore often recover errors by deducting from the recipient's future earnings.