ACH Disputes
For any ACH transaction to a consumer account, there is what is called a Right of Return.
The consumer has 60 calendar days to challenge any ACH transaction with their bank and have it returned. Within the ACH network’s Rules, there is no requirement to notify the Originator (Merchant) or anyone else of the return.
The consumer must complete and sign a Written Statement, submit it to the bank and the transaction will be returned. That being said, they have 60 calendar days to initiate a chargeback. Past that time frame, the customer can go to their bank, but their bank is required to make a request for a copy of the authorization. That is when merchant has opportunity to provide proof of authorization. Either way, keep in mind that a valid, properly executed authorization for all intents and purposes is a contract and if one party breaches the terms of the contract, you have rights outside of the ACH Network. Also note that after the 60 days, a Proof of Authorization request can go up to 2 years from the settlement date.
The merchant can send it to collections, have an attorney send a notice or take the consumer to court (regular or small claims—depending on the value of the transaction or authorization in question). While Forte does not dispute ACH chargebacks, Forte can request a Written Statement of Unauthorized Debit Copy or WSUD from the bank for a fee of $35.
Credit Card Chargebacks
For credit card chargebacks, consumers have up to 120 days to dispute a transaction, however there are exceptions that could extend the timeframe past 120 days. The merchant will always have the opportunity to show proof of authorization. As a merchant, you can dispute the chargebacks you receive on a credit card transaction with your credit card processor.
Below are recommendations/best practices to help a merchant properly respond to a credit card chargeback.
- Always address the chargeback code specifically within a Rebuttal Statement or Statement of Events regardless of the chargeback reason code.
- Sometimes it may seem simply enough with documentation alone, but the supporting documentation must be reviewed by the Card Issuer and Card Holder. By providing a rebuttal statement this will assist the Card Issuer and Card Holder with a clear understanding of what has occurred. In addition, this could be all the Card Holder needs to understand the transaction and possibly withdraw their dispute.
- Be specific with dates/times to build a timeline of events,
- Sometimes it may seem simply enough with documentation alone, but the supporting documentation must be reviewed by the Card Issuer and Card Holder. By providing a rebuttal statement this will assist the Card Issuer and Card Holder with a clear understanding of what has occurred. In addition, this could be all the Card Holder needs to understand the transaction and possibly withdraw their dispute.
- Provide invoices / statements to assist in corresponding the amounts with the transaction being disputed; if possible.
- Provide Cancellation Policies and Refund Policies.
- Provide Signed sales receipt(s) if available.
- Provide supporting documentation for all transactions if the dispute is regarding duplicate payments or payments by other means.
For more information on Disputes, reference these resources.
Support Services/External Link for Customer Disputes Information