Understand ACH returns and card chargebacks.
As you conduct transactions, you may occasionally encounter terms like “ACH returns” and “card chargebacks.” Here’s what you need to know about each, including the key roles involved, return windows, and how they might impact your experience.
returns occur when an electronic payment, such as a direct bank transfer or direct debit, cannot be completed successfully. Common reasons include:
When an ACH return happens, the RDFI sends the return information to the ODFI, which reverses the transaction and returns the funds to the party that was debited.
ACH return windows vary depending on the reason code:
For a full list of ACH returns and all pertinent information including descriptions, category, account types, and timeframes, please refer to Return Codes and Card Chargeback Network Reasons
monitors return activity to detect abuse and enforce network rules. The following thresholds are in place:
Merchants and ODFIs exceeding these limits may be subject to investigation or enforcement action.
Card chargebacks occur when a cardholder disputes a transaction made on their credit or debit card. Common reasons include:
During a chargeback, the issuing bank temporarily or permanently returns the transaction amount to the cardholder. The merchant’s acquiring bank is informed, and the merchant may dispute the chargeback by providing evidence of the transaction’s validity.
For a full list of chargebacks and all pertinent information including, descriptions, category, and timeframes, please refer to Return Codes and Card Chargeback Network Reasons.
Visa and Mastercard monitor chargeback activity to identify high-risk merchants:
Visa Chargeback Monitoring Program (VCMP):
Mastercard Excessive Chargeback Program (ECP):
Merchants exceeding these thresholds may face fines, increased fees, or termination of processing privileges.
Understanding these terms, timelines, thresholds, and roles helps you manage your transactions more effectively. If you have questions about ACH returns or card chargebacks, please reach out to [email protected] for support.
Understand ACH returns and card chargebacks.
As you conduct transactions, you may occasionally encounter terms like “ACH returns” and “card chargebacks.” Here’s what you need to know about each, including the key roles involved, return windows, and how they might impact your experience.
returns occur when an electronic payment, such as a direct bank transfer or direct debit, cannot be completed successfully. Common reasons include:
When an ACH return happens, the RDFI sends the return information to the ODFI, which reverses the transaction and returns the funds to the party that was debited.
ACH return windows vary depending on the reason code:
For a full list of ACH returns and all pertinent information including descriptions, category, account types, and timeframes, please refer to Return Codes and Card Chargeback Network Reasons
monitors return activity to detect abuse and enforce network rules. The following thresholds are in place:
Merchants and ODFIs exceeding these limits may be subject to investigation or enforcement action.
Card chargebacks occur when a cardholder disputes a transaction made on their credit or debit card. Common reasons include:
During a chargeback, the issuing bank temporarily or permanently returns the transaction amount to the cardholder. The merchant’s acquiring bank is informed, and the merchant may dispute the chargeback by providing evidence of the transaction’s validity.
For a full list of chargebacks and all pertinent information including, descriptions, category, and timeframes, please refer to Return Codes and Card Chargeback Network Reasons.
Visa and Mastercard monitor chargeback activity to identify high-risk merchants:
Visa Chargeback Monitoring Program (VCMP):
Mastercard Excessive Chargeback Program (ECP):
Merchants exceeding these thresholds may face fines, increased fees, or termination of processing privileges.
Understanding these terms, timelines, thresholds, and roles helps you manage your transactions more effectively. If you have questions about ACH returns or card chargebacks, please reach out to [email protected] for support.