ACH unauthorised returns process
The customer claims / payment returns process gives customers protection against unauthorised payments being collected from their account.
Please note: A chargeback / customer claim is known as an unauthorized return in the ACH scheme.
A claim can be made under the following conditions:
A customer can make a claim under the unauthorized returns process under the following conditions:
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Payment details were submitted under a corporate account, rather than a consumer account
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The consumer revoked the ACH debit authorization but payments were still collected
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The consumer believes the transaction was fraudulent or improper
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A corporate account has not been authorized correctly
How a customer can make a claim:
The customer will need to contact their bank to dispute the transaction. The customer may need to complete a signed form, or affidavit, providing the transaction details and the reason for submitting the claim. The claim is then reviewed by the bank and the funds returned to the customer.
Claim time limit:
ACH Debit payments can be claimed back for up to 2 banking days for a business account or 60 calendar days for a consumer, as outlined under the NACHA (National Automated Clearing House Association) rules.
Under Regulation E (see below), there is also another 60 day period from when statement is received (Regulation E).
Regulation E
Customers are protected by both the ACH network rules and also through Federal Regulation, via Regulation E . Regulation E supersedes the ACH rules and therefore, there can be some differences to how an unauthorized return is processed. In addition to the 60 days, Regulation E extends this period for another 60 days from the point the customer receives their bank statement containing the unauthorized transaction. Typically, banks issue statements to customers monthly, although the longest allowable period is quarterly and therefore, this could potentially allow for returns up to 150 days from the transaction date.