ACH has a dispute system like credits cards. Credit cards have a dispute window of 120 days. Personal bank accounts have a dispute window of 60 days. Business bank accounts have a dispute window of 3 business days.
The problem with disputes on ACH debits is that the process is not formalized through a standard network like Visa or MasterCard. It's a mess operationally, and there's a near zero chance of winning the dispute. This becomes even worse because of the size of ACH transactions.
We've reduced the risk by requiring trial deposits on any bank account that you want to debit, which is also a problem for a lot of our customers.
> It's a mess operationally, and there's a near zero chance of winning the dispute
To be clear, does this refers to the business accounts / users ? The consumers with personal accounts who dispute the charges have their way and the charging entity is left to deal with the results?
The problem with disputes on ACH debits is that the process is not formalized through a standard network like Visa or MasterCard. It's a mess operationally, and there's a near zero chance of winning the dispute. This becomes even worse because of the size of ACH transactions.
We've reduced the risk by requiring trial deposits on any bank account that you want to debit, which is also a problem for a lot of our customers.