If a customer in the US wishes to challenge the withdrawal of funds from their bank account, they can make a claim for reimbursement with their bank under the unauthorized returns process.
Claim can be made under any of the following conditions:
- Payment details were submitted under a corporate account, rather than a consumer account
- The consumer previously revoked the ACH debit authorization, however subsequent payments were still debited
- The consumer believes the transaction was fraudulent or improper
- A corporate account has not been authorized correctly
There are 3 steps involved in the claims process:
- Customer contacts their bank to dispute a transaction.
- Customer may need to complete a signed form, or affidavit, providing transaction details and the reason for submitting a claim
- The claim is reviewed by the bank, and the funds are returned to the customer
Any returned funds will appear as a negative amount against the respective merchant's GoCardless account and will be balanced out against subsequent collected payments.
Claim time limit
ACH Debit payments can be claimed back for up to:
- 2 banking days for a business account
- 60 calendar days for a consumer, as outlined under NACHA (National Automated Clearing House Association) rules