When customers are charged automatically with our auto-charge or auto-pay features, and do not manually pay the invoice themselves, there is an increased risk of bank-initiated and customer-initiated chargebacks occurring. In order to mitigate ACH chargebacks when utilizing auto-charge and auto-pay, we have outlined our recommended guidelines.
Do not attempt to re-charge a customer after a failed ACH transaction. First notify your customer to confirm their bank account information is correct and that they have sufficient funds in the account
Ensure you are charging your customer’s preferred payment method, and they have denoted this in their dashboard accordingly
Confirm customers are aware they are being auto-charged or set-up on auto-pay
Clearly communicate your refund policies to customers, and make it easy for them to request a refund if they are unhappy with their purchase
If ACH chargebacks persist with any given customer, our team will help you develop a strategy for capturing payment without any issues.