A: 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 only have those 60 calendar days to initiate a chargeback. Beyond that time frame, the customer cannot just return a transaction. They can still go to their bank, but their bank is required to make a request for a copy of the authorization. That is when you get your 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. You 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 the WSUD from the bank for a fee of $35.
For credit card chargebacks, clients have up to 2 years to dispute, but as a merchant, you 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.