Automated Clearing House dispute flow

The following key points determine the flow of Automated Clearing House (ACH) disputes:

• The account holder identifies an issue with a transaction and notifies their bank or the receiving depository financial institution (RDFI) of their intent to dispute the transaction.
• The RDFI may require the account holder to provide a written statement of unauthorized debit (WSUD), or other supporting documentation to validate the dispute.
• The RDFI reviews the dispute and determines if it is valid and meets the criteria set by the National Automated Clearing House Association (NACHA), which is the organization that governs the ACH network and its rules and regulations.
• If the RDFI determines that the dispute is eligible for return, it contacts the originating depository financial institution (ODFI), to request more information or evidence.
• If the RDFI determines that the dispute is ineligible for return, it resolves the dispute, either by a write-off or by notifying the account holder that they must bear the charge.