Has an eCheck (ACH) payment from a tenant been returned with a reason for return that indicates the payer is contesting it, rather than due to insufficient funds? This article will explain why.
If the ACH Chargeback is from a payment that is OVER 60 days, click here for more information
Tenants or Owners have a right to dispute an eCheck (ACH) payment within 60 calendar days. Below is an explanation from our payment processor:
"Due to the NACHA rules and regulations ACH disputes must be handled outside the ACH network . The customer also has a Right of Return. The consumer has 60 calendar days to challenge any ACH transaction with their bank and have it returned. NACHA is the network that governs the ACH payment system. Within the ACH network’s Rules, there is no requirement to notify the Originator (Merchant) or anyone else of the return. The consumer must complete and sign a Written Statement (WSUD), submit it to the bank and the transaction will be returned.
Either way, keep in mind that a valid, properly executed authorization is for all intents and purposes a contract and if one party breaches the terms of the contract, you have rights outside of the ACH Network. You can send to collections, have an attorney send a notice or take the consumer to court (regular or small claims – depending on the value of the transaction or authorization in question)."
Below are the reasons for return that apply to this particular situation:
- Code R05 = UNAUTHORIZED DEBIT TO CONSUMER ACCOUNT USING CORPORATE SEC CODE
- Code R07 = AUTHORIZATION REVOKED BY CUSTOMER
- Code R10 = CUSTOMER ADVISES ORIGINATOR IS NOT KNOWN TO RECEIVER AND/OR ORIGINATOR IS NOT AUTHORIZED BY RECEIVER TO DEBIT RECEIVER’S ACCOUNT
- Code R29= CORPORATE CUSTOMER ADVISES NOT AUTHORIZED
It is important to note that there will be a $35 fee for each of these return types, which will be included on your Rentvine invoice.
Example of email notification that signifies this type of return: Notice the return reason on the email.
Example of the Return explanation on the Tenant payment details page