NACHA Unauthorized Return Fee

Sept. 28, 2017


NACHA, the governing body for the Automated Clearing House (ACH) Network, has introduced a new fee with the intention of reducing the number of unauthorized returns, which are akin to chargebacks in the card ecosystem.  

The consumer’s bank, referred to as the Receiving Depository Financial Institution, or RDFI, will now charge $4.50 per unauthorized return. The goal is to ensure merchants are only charging customers who are properly informed and have authorized the charges for goods supplied and/or services rendered.

Starting Nov. 1, you will see this additional fee for unauthorized returns passed through by Vantiv. Keep in mind, you must still keep your unauthorized return rate below 50 bps of your overall returns or face additional penalties at the discretion of NACHA. 

There are several best practices you can enact to avoid this expensive fee and remain compliant:

  •          Provide a recognizable merchant name for each transaction, so the consumer recognizes the origin of the charge.
  •          Provide a correct contact phone number, so consumers can contact you with inquiries.
  •          Capture and retain a proof of authorization record for use if the consumer does dispute the change.

If you have any questions, please contact your eCommerce relationship or partner manager. 


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