You should always keep a record of your ACH returns in case there’s a bank dispute or you’re asked to pay return fees associated with the transaction. Make sure to keep a record of the original return notification in case a dispute arises in the future. Reach out to the customer if that happens and make sure they take the necessary steps so that subsequent returns can be avoided. If the transaction keeps getting rejected, there may be a problem with the sender’s account that has remained unresolved. Keep an eye out for another return notification in case the ACH payment is rejected again. Step 3: Reinitiate the transactionĪsk the customer to reinitiate the transaction from their end once the issue is resolved.ĭepending on the bank and the reason for the rejection, the customer may be required to authorize the transaction again under a new ACH file. Once you’ve figured out the reason behind the return, contact the customer who initiated the transaction to resolve the issue.ĭepending on the reason for the ACH return, the customer may need to take additional steps to make sure that the payment is processed once reinitiated. If no additional information is included in the notification, you can contact your bank to identify the reason. Review it to determine the reason behind the ACH transaction so you can avoid it in the future. The return notification should contains details about the transaction and why it was rejected. Here are the steps you should take once you receive an ACH return notification from your financial institution: Step 1: Review the return notification When an ACH return occurs, you’ll typically receive a notification from your bank through email or text. Steps to take once you receive an ACH return notification Cases that require further investigation could take up to 60 business days to process. ACH return timelines for merchantsĪCH returns usually take 1-2 business days to be processed and up to 5 business days to complete. The fee amount usually ranges between $2 and $5, and is paid by the customer. Just like banking transaction fees, the banks involved in an ACH transaction may charge a fee for the failed transaction. Your bank may initiate an ACH return when that occurs. Disputed payments and stop payment ordersĪfter a customer initiates an ACH transaction, they still have time to revoke authorization. Bank holidays and server-related issuesĪCH returns often occur if there’s a bank holiday on the date of the transaction or if the banks involved are having server or system-related issues while the transaction takes place. Duplicate transactions happen when the customer makes multiple attempts to pay for a transaction. When the receiving bank notices a duplicate transaction that’s similar to a recently made payment, it may issue a return to the sender’s account. Duplicate transactions in the receiver’s account If your customer’s bank account is blocked, frozen, or closed during the transaction, a return may be issued by the receiving institution. Blocked, frozen, and closed bank accounts If the payment amount exceeds the maximum limit imposed by the sending or receiving banks, an ACH return will be issued. If the account number, routing number, or bank credentials entered by the customer don’t match what’s on record, a return may be issued. If the customer does not have the necessary funds, the payment will be rejected and a return will be issued. When a customer tries to make a payment, the originating bank will check to make sure the customer has enough funds in their account to cover it. Insufficient funds in the customer’s account Here are the most common causes of ACH returns: 1.
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