Thread Options
#2246856 - 12/23/20 12:56 PM PayPal ACH Dispute
terpsfan Online
Diamond Poster
Joined: Feb 2007
Posts: 1,862
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?

Return to Top
eBanking / Technology
#2246859 - 12/23/20 01:44 PM Re: PayPal ACH Dispute terpsfan
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 75,540
Galveston, TX
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.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2246861 - 12/23/20 02:21 PM Re: PayPal ACH Dispute terpsfan
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,196
On the Net
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.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top
#2246863 - 12/23/20 02:53 PM Re: PayPal ACH Dispute terpsfan
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 75,540
Galveston, TX
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.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2246865 - 12/23/20 02:56 PM Re: PayPal ACH Dispute terpsfan
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 38,945
Cape Cod
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.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2246891 - 12/23/20 08:44 PM Re: PayPal ACH Dispute terpsfan
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,196
On the Net
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.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top
#2246895 - 12/23/20 09:30 PM Re: PayPal ACH Dispute terpsfan
BrianC Online
Power Poster
BrianC
Joined: Nov 2004
Posts: 5,806
Illinois
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.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com

Return to Top

Moderator:  Andy_Z