Can we return a ACH under NACHA rules when the transaction was authorized through PayPal but the customer is disputing that they did not get what they ordered? I don't believe these would be covered under Reg E but if we want to help serve our customer's would there be an issue with processing this return?

Not sure under what guidelines you could return it if it was an ACH - there are no "I didn't get what I ordered" rights for ACH transactions like there might be through MC or VISA.

I'm no expert on the ACH rules but I believe permissions may be revoked. You may be on a short timeline for this and the holiday may complicate the issue so I'd do positive research (meaning actively seeking the answer). The threads are great, but not always for something with a short fuse. I would say this is similar to writing a check and placing a stop, its a revoked authorization.

Andy - unless the merchandise was delivered so that they could determine that it was not what they expected before the ACH posted - I believe the horse is out of the barn on this one.

Randy's right. ACH authorizations can be revoked, and there is a right to stop payment under Nacha rules, but neither revocation nor a stop payment has any effect if the transaction has already posted to the customer's account. In my experience, it's not likely for the transaction to hit the account after the package has been delivered.

Yes, "they did not get what they ordered" didn't sink in as to be untimely. I don't believe ACH has the lookback period credit cards and merchant disputes do. Good point.

Yep.

This customer will have to go through PayPal's dispute processes to deal with the merchant. The Bank has no dog in this hunt.