Sometimes after goods or services are rendered, you may discover your customer's ACH payment has been returned to the customer or a credit/debit card payment has been disputed (also known as a chargeback). Similar to when a paper check has bounced or a cash bill was counterfeit, you have some options on how to resolve the situation.
Autobooks does not have a role in pursuing the customers of our merchants. When a return or chargeback occurs, Autobooks will send you an email with details of the dispute.
- In the event of an ACH return, the reason for the return is provided in our email (e.g. insufficient funds).
- For a chargeback, information is included on how the decision can be overturned (how to dispute).
For merchant/customer payment conflicts, options are:
- Follow any options within the Autobooks email you received (see below for details).
- Work with the customer for the return of goods.
- Work with the customer for collection of a new payment.
- Work with the customer on resolving any chargeback disputes.
- Pursue civil, criminal, or collection activity if desired.
Additionally, some businesses institute policies on who can access goods/services before payment is fully settled into the deposit account. For tips on best practices to remedy these situations, we recommend seeking a small business attorney, consultant, or organization with information on your particular state laws.
Autobooks Chargeback Options
You'll receive an email notification from Autobooks in the event that a dispute or chargeback has occurred. A chargeback email (occurs when your customer has disputed a charge with their credit/debit card issuer) will detail your response options:
- Accept the chargeback - no further action is required by you once you indicate to Autobooks that you accept the chargeback. Accepting the chargeback will act as a refund, and Autobooks will update records within your account.
- Refute the chargeback - if you wish to refute, you'll need to provide evidence refuting the customer claim to Autobooks. Autobooks will work with the customer credit/debit card issuer, providing your evidence. Autobooks will inform you of a final chargeback decision from the issuer.
When a chargeback occurs, and during any refute process, the chargeback funds will be debited from the bank account you have associated with Autobooks. If the refute process is successful, the chargeback funds will be credited back to your bank account upon resolution.
The timeframe a chargeback or dispute may occur is set by the card brand, issuing bank, or ACH provider used by your customer. The Fair Credit Act mandates 60 days be allowed for a chargeback to occur. National Automated Clearing House Association (Nacha) guidelines for ACH returns are similar, and allowable return timeframes are a maximum of 60 days from the payment being processed.
As always, if you should have additional questions or concerns, please contact us at support@autobooks.co.