The ABC's of ACH Chargebacks

iEditorial Note: These blog posts represent the opinion of DoNotPay’s Writers, but each person’s situation and circumstances vary greatly. As a result, you should make sure to do your own independent research. Because everyone is unique, our self-help tools are never guaranteed to help with any specific situation. DoNotPay is not a law firm and is not licensed to practice law. DoNotPay provides a platform for legal information and self-help.

How to Get an ACH Chargeback Without the Headache

An Automatic Clearing House (ACH) payment is an electronic payment that moves funds from one account to another. Many sellers prefer ACH payments to credit card payments because they don't have the same processing fees, so you may find yourself making ACH payments with service providers that don't allow credit cards.

Unauthorized transactions can interrupt your spending and budget. Whether an online transaction charged you twice because of a computer glitch or an in- store cash register had an error, erroneous charges can add up quickly. But disputing the charge and following up with your service provider or the store that made the mistake can be incredibly frustrating.

Find a better way to get your finalized and off your to-do list with help from the robolawyer at DoNotPay.

Disputing Transactions: Chargebacks vs Refunds

People are often confused about the difference between chargeback and refunds . Both are pathways for consumers to dispute unauthorized transactions. Here's a breakdown of the key differences:

RefundsRefunds are processed and funded directly by merchants. This may require consumers to provide documentation and/or contact difficult customer support teams. Seeking a refund can be a slow option and it can take several business days for monies to be deposited.
ChargebacksChargebacks are processed by the bank or card issuer directly and serve to protect consumers from fraudulent charges. Every financial institution has its own system and timeline for processing chargebacks, but all chargeback policies protect consumer cash.

How to Get an ACH Chargeback on Your Own

Whenever your accounts have an ACH transaction that you didn't authorize, you have every right to dispute it and get those funds back. It 's important to dispute any ACH transaction that you don't recognize, that was processed too early, or that is for a different amount than you agreed to.

However, consumers only have 90 days from when the unauthorized ACH transaction was processed to make a dispute. Once 90 days have passed since the processing date (not the date you noticed it!), then it 's too late.

To dispute a charge, you must inform your bank about the incident. You can dispute the ACH charge by these methods:

  • Website or Email: Some major account providers allow their customers to dispute ACH charges through a portal on the website. Contacting their support team via chat or email can also provide you with specific instructions for your service provider
  • Letter: Most banks and service providers require notice to be provided in writing within 90 days of the transaction processing date. This letter should have clear details about the transaction, evidence that the transaction is erroneous or was made without your consent, and your signature.

How Long Will It Take to Receive Your ACH Chargeback?

Uncontested ACH transaction disputes can be handled quickly, with the funds returning to your account in as little as five to seven business days. However, if the merchant contests the chargeback, finalizing the chargeback can take up to several months.

Issues You Might Encounter When Requesting an ACH Chargeback

Noticing a wrong or unwanted ACH transaction on your statement is frustrating. When you're disputing the charge on your own, there are some equally frustrating issues you may encounter including:

  1. Confusing Charge Names : Companies may name a charge with a confusing term, abbreviations, or a serial number. This can make you uncertain if you allowed the charge or not.
  2. Services That Dispute Disputes: Chargebacks can cost merchants additional fees, disrupt their cash flow, and mark them for high-risk merchant accounts. Because of this, many companies hire services that fight back against ACH disputes. This can complicate the process and cost you extra time.
  3. The Dispute Deadline : Banks generally only accept ACH transaction disputes that are made within 90 days of the incident. If you don't notice the incorrect charge until that deadline is nearly passed, hurry to make a dispute on time with enough details.


How Can You Check the Status of Your ACH Chargeback?

Every bank is different. Ask the customer support team at your bank for updates and details.

How to Get an ACH Chargeback With DoNotPay

DoNotPay makes the process simple by creating the letter on your behalf with all the details you need to dispute the charge. Through our simple survey, we'll get the details your bank needs to process your ACH chargeback. We can even mail them the letter for you!

Requesting your ACH chargeback is easy with DoNotPay at your back. Once you file a request through our robolawyer system, we'll automatically handle the next steps so you can look forward to having the funds back in your account without being put on hold or spending hours trying to untangle the mess.

Our process for easy ACH chargebacks has just five simple steps:

  1. Log on to your account and select the "File a Chargeback" option: Now, DoNotPay knows what problem you want to solve.
  2. Fill out the quick survey: Our system will ask you a couple of easy questions about the card you used, your bank, and other details about the transaction you want to dispute, such as the company, date, and amount.
  3. Provide your evidence: Here, you can say if you don't recognize the charge, if your card has been lost, or if there's any evidence the charge was a duplicate or computer error.
  4. Verify the information and your contact details: This will ensure all of your information is correct and complete.
  5. Decide if you want DoNot Pay to send the letter for you. We can generate the letter with all the details and mail the letter on your behalf or provide you with a copy so you can mail it yourself.

That's it! Once you've completed these simple steps, our robolawyer will be hard at work sending the letter and follow our proven process for getting ACH chargeback fully resolved. Working with DoNotPay is an effortless way to get on top of chargebacks you notice in your payment history.

What Else Can DoNotPay Do?

DoNotPay is designed to save you time and frustration when it comes to disputing a charge, and the painless process can assist you well beyond disputing an ACH charge.

There 's no reason to be intimidated by big business! With DoNotPay's 'File a Chargeback' product, you can also dispute a transaction from any of these companies:

With options like virtual credit cards that help you avoid fees after free trials, along with a wide variety of simplified refund and dispute services, DoNotPay is the proven way to level the playing field for the consumer.

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