ACH Chargebacks are defined as those that were improperly authorized or improperly executed based on the authorization received. Four ACH Return Codes (R05, R07, R10 and R29) are considered chargebacks. (See Appendix B: ACH Chargeback Return Codes for details on Chargeback Return Codes.)
Unfortunately, once a chargeback return code has been issued there is no dispute process within the ACH system that can be used to reverse it. As a merchant accepting ACH transactions, it is important that you do everything you can to prevent chargebacks.
The first step in preventing ACH chargebacks is to understand their most common causes, and the second is to take steps to address them as part of your standard business practices.
The following are some suggestions on what to expect and what you can do. You can click on the Next links, located at the bottom of each screen, to read through the entire section. Or click one of the links below to jump to a particular area of interest.
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