What happens when there is a local electronic bank transfer (e.g. ACH) dispute?

Disputes on Electronic Fund Transfer payments (for example, ACH payments) are fundamentally different than those on credit card payments. If a customer’s bank accepts the request to return the funds for a disputed charge, borderless™ immediately removes the funds from your bank account plus applicable fees. Unlike credit card disputes, you can’t contest ETF reversals. You must contact your customer to resolve the situation. In the US, the ACH network allows 60 days for consumers to contest a debit.

If you proactively issue your customer a refund while the customer’s bank also initiates the dispute process, your customer may receive two credits for the same transaction.