Chargeback Dispute — ACH payment reversed after goods shipped

I handle commercial payment disputes and want to address this because ACH reversals after goods have shipped present different legal issues than credit card chargebacks. The key difference is that ACH transactions are governed by NACHA Operating Rules and UCC Article 4A, not the Fair Credit Billing Act that governs credit card disputes.

Under NACHA rules, an ACH debit can be returned for unauthorized transactions within 2 business days (or up to 60 calendar days for consumer accounts). But here is the critical point: if the buyer authorized the ACH payment and then initiated a return claiming it was unauthorized, that constitutes fraud. Unlike credit card chargebacks where the burden falls heavily on the merchant, ACH disputes give the originator (you, the seller) more recourse.

For a 40,780 dollar transaction, this is well worth pursuing legally. Your first step should be contacting your bank and requesting documentation of the return reason code. The NACHA return codes tell you exactly why the payment was reversed. If it was R10 (customer advises not authorized), you need to provide evidence of authorization, such as a signed purchase order, email confirmation, or recorded phone authorization.

If the buyer received the goods and then fraudulently reversed the payment, you have claims for conversion, unjust enrichment, and potentially fraud. At this dollar amount, you are past small claims limits in most states, so you would need to file in civil court. An attorney sending a demand letter citing the specific NACHA violation and threatening a fraud complaint often resolves these situations quickly because the buyer realizes they have criminal exposure.