What is an ACH Chargeback?

An ACH Chargeback is a payment made with ACH that was not authorized and/or returned for different reasons.

A chargeback is also considered a Dispute for ACH payments.

Chargeback Reasons

  • Insufficient funds
  • The account is closed
  • No Account/Unable to Locate Account (The account number entered is incorrect.)
  • Non-Transaction Account (Bank accounts that are not payment accounts.)
  • Corporate Customer Advises Not Authorized (The payer and the bank institution have declined the authorization for this transaction)
  • Payment Stopped

How do Chargebacks work?

You will receive an email notification when there is a new chargeback or dispute:



All ACH Chargebacks are final, and there is no process to appeal. If a payer has an ACH chargeback, you must work with them directly to resolve the situation.

You can check your chargebacks by going to the Paystand Dashboard.

1. Click Transactions > Disputes


Chargeback Fee

USD 35.00 fee will be charged for every dispute or chargeback, regardless of the status of the dispute.

Additional Resources

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