Handling ACH Returns on Merchant Invoices

Read the actual return notice

Record the provider’s trace or payment reference, return date, amount, and reason. Verify which invoice the original payment covered. Keep the original entry and record the return separately so both events remain visible in the account history.

Route each return to the right person

• Send a suspected unauthorized debit to the provider contact responsible for exception handling and locate the associated authorization.
• For a bank detail or account problem, use the provider’s approved method to have the customer update the information.
• Check whether the provider permits a new attempt for that reason and whether it requires a new authorization. Keep automatic retries subject to its rules.

Reconcile funds and document the customer update

Reverse the applied payment in the invoice ledger and tie it to the return amount shown by the provider. Review any shipment or access already released. If a new payment is appropriate, communicate the remaining amount and use a secure provider-approved channel.