Skip to content
BOL Conferences
Thread Options
#1702490 - 05/23/12 04:34 PM Business ACH Dispute
hcja1994 Offline
New Poster
Joined: Feb 2012
Posts: 7
If a business has recurring ACH Debits (different dollar amounts each time, but same originator)that bear the standard entry class code of PPD can these charges be disputed and or returned?
Last edited by hcja1994; 05/23/12 04:44 PM.
Return to Top
Deposits and Payments
#1702512 - 05/23/12 04:57 PM Re: Business ACH Dispute hcja1994
tdogz Offline
100 Club
tdogz
Joined: May 2012
Posts: 229
In an instance like this, the SEC code is controlling, not the account type. If the customer tells you that the authorization for the recurring debit was revoked with the company (in accordance to the terms of their authorization & prior to the debit), then you can return the item R07. If it was never authorized, it came in earlier than authorized, or is for a different amount than authorized, you can return it R10. I would get an account signatory to sign a WSUD. Since these are PPDs instead of CCDs, you have 60 days from the settlement date to return the items as unauthorized (R10) or authorization revoked (R07).

Return to Top
#1702606 - 05/23/12 06:50 PM Re: Business ACH Dispute tdogz
hcja1994 Offline
New Poster
Joined: Feb 2012
Posts: 7
Thanks, my understanding is that the orginator went out of business and that the goods/ services were not recieved even though debits were being processed. Any recourse here?

Return to Top
#1702625 - 05/23/12 07:23 PM Re: Business ACH Dispute hcja1994
tdogz Offline
100 Club
tdogz
Joined: May 2012
Posts: 229
As far as I understand, this has to be handled between your customer and the merchant. These transactions were authorized, so there is no standing to return the debits through the ACH network. If they had used a credit card, a Visa/MasterCard fraud claim could have been made, but since these are ACHs, I believe they'll just have to work out something with the merchant or file a claim against the company's assets if they are filing for bankruptcy. Hopefully it isn't for too much money, because both of those options are probably long shots. Maybe someone else will have a another idea, but I can't think of another option right now.

Return to Top
#1702712 - 05/23/12 08:44 PM Re: Business ACH Dispute hcja1994
St Louis Jeff Offline
100 Club
Joined: Jun 2007
Posts: 105
Under the NACHA Rules only Unauthorized and Authorization Revoked
transactions can be returned through the ACH network. Receivers have no recourse through their bank for situations in which good/services weren't received or weren't satisfactory. They must take this up directly with the company that originated the ACH transaction.

Return to Top

Moderator:  John Burnett