ACH unauthorised returns process

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:

1. Payment details were submitted under a corporate account, rather than a consumer account
2. The consumer previously revoked the ACH debit authorization, however subsequent payments were still debited
3. The consumer believes the transaction was fraudulent or improper
4. A corporate account has not been authorized correctly

There are 3 steps involved in the claims process:

1. Customer contacts their bank to dispute a transaction.
2. Customer may need to complete a signed form, or affidavit, providing transaction details and the reason for submitting a claim
3. 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