# Payment disputes

> Understand payment disputes and protect your business with expert guidance on chargebacks and ACH returns. Learn causes, timelines, dispute processes, and strategies to minimize losses

<AudienceInfo audiences={["developers", "partners", "merchants"]} />

Chargebacks and ACH returns are both kinds of payment disputes that result in a negative action, and can impact your bottom line and ability to accept certain payment methods. This guide covers the basics of what you need to know about chargebacks and ACH returns.

<Tip>
  Use the 

  `ReceivedChargeBack`

   and 

  `ReceivedAchReturn`

   webhook event notifications to integrate new chargeback and ACH return notifications into your own app. See 

  [Manage Notifications](/guides/pay-ops-developer-notifications-manage)

   for more.
</Tip>

## Chargebacks

A chargeback provides cardholders with a way to dispute a transaction with a merchant (paypoint in Payabli). Chargebacks happen for several reasons, including:

* Fraudulent transactions
* Shipping, delivery, or pricing issues
* Credit or refund not processed
* Unsatisfied with product or service purchased
* Duplicate charges
* Unrecognizable business name on credit card statement

The credit card networks set the chargeback rules, while processors, acquirers, and merchant processing providers set fee schedules for chargebacks.

In addition to chargebacks, an issuing bank can also initiate a retrieval request, in which the bank asks for more information about a transaction.
Not all retrieval requests turn into chargebacks, but if a merchant doesn't respond in time or the documentation they offer isn't satisfactory, the issuer will open a chargeback.

An important difference between a chargeback and a retrieval request is that funds aren't withdrawn from the merchant when a retrieval request is initiated.
Processors charge a fee for both retrieval requests and chargebacks, even if the merchant wins the dispute.

### The chargeback process

At its core, the chargeback process works like this:

1. The cardholder contacts the issuing bank and disputes a transaction.
2. A chargeback is initiated and posted to the processor and merchant. The funds are immediately credited back to the cardholder by the issuer and the merchant's account is debited immediately for the chargeback amount. The chargeback fee is debited at end of month billing.
3. The processor requests documentation related to the transaction from the merchant. If the merchant has decided to defend themselves, the merchant provides the documentation, and the processor forwards it to the issuer. They can also accept the chargeback by not defending it.
4. The issuer weighs the evidence and decides in the cardholder or merchant's favor and updates the chargeback status.

<img src="https://files.buildwithfern.com/payabli.docs.buildwithfern.com/5108ebed58459c031ed76d719ea49b3beabaec9bf65be0a2d762c29bb56ad71e/images/generated-diagrams/chargeback-flowchart.svg" alt="Chargeback dispute resolution process" aria-describedby="chargeback-flowchart-desc" />

<div id="chargeback-flowchart-desc" class="sr-only">
  <h4>
    Diagram: Chargeback Dispute Process
  </h4>

  <p>
    This diagram shows the decision flow for resolving chargeback disputes:
  </p>

  <ul>
    <li>
      Cardholder disputes transaction with issuing bank
    </li>

    <li>
      Processor requests documentation from merchant
    </li>

    <ul>
      <li>
        If merchant accepts chargeback without challenge: Processor maintains chargeback status (merchant loses)
      </li>

      <li>
        If merchant provides documentation: Processor evaluates evidence
      </li>
    </ul>

    <li>
      Processor evaluates chargeback based on documentation
    </li>

    <ul>
      <li>
        If processor rules in cardholder's favor: Chargeback status maintained (merchant loses)
      </li>

      <li>
        If processor rules in merchant's favor: Chargeback status reverted (merchant wins)
      </li>
    </ul>
  </ul>
</div>

Here's the chargeback process explained in more detail:

When a cardholder disputes a transaction, the issuer requests documentation to validate the transaction in question.
The information that the cardholder gives to the chargeback representative at the issuing bank determines the dispute
code chosen and the documentation needed to defend it, initiating a retrieval request.

If a chargeback is initiated, the issuing bank posts the chargeback to the processor and merchant. If the merchant chooses to challenge the chargeback,
they can submit evidence that proves the validity of the original transaction. The processor requests any supporting documentation
related to the transaction from the merchant, and then forwards the provided documentation to the issuer.

After they receive the documentation, the issuing bank determines if the evidence is strong enough to support the merchant's defense.
If the evidence is strong enough, the issuer decides in the merchant's favor and updates the chargeback status.
If the evidence isn't strong enough, the issuing bank and merchant may initiate the process of arbitration, where both parties will make their argument with the card networks.
At this stage, the issuer may charge a fee to both parties.
When the issuer has decided in favor of the cardholder or merchant, they contact both parties with the final decision.

<Note>
  After a chargeback has been initiated, you can't refund the associated transaction. You 

  *can*

   refund a transaction during a retrieval request.
</Note>

### Why chargebacks matter

You should take steps to keep your chargebacks low for several reasons.

**You're charged for retrieval requests and chargebacks**

Merchants are charged a fee of between \$10 and \$15 for each retrieval request. If a retrieval request becomes a chargeback, there is another fee of \$25 or higher. Each processor, acquirer, and merchant processing provider has their own fee schedule.

**You lose money and time, even if you win**

If you lose the dispute, the issuer charges you the amount of the original transaction. This means that you lose money, and time. Even if you win the dispute, you still have to pay the chargeback fees.

**You can have a certain number of chargebacks in a month**

These limits are both a count threshold and a percentage threshold. For example, Visa and Mastercard have a count threshold of 75 chargebacks per month, and chargebacks must amount to less than 2% of your monthly volume. If you go over these limits, you enter the issuer's "chargeback program" and you have 3 months to lower your chargeback counts and volume. The program includes large fines, and if you continue to go over the chargeback limits, you will lose the privilege of accepting cards from that issuer.

### Handling chargebacks

It's crucial that you respond to chargebacks within 10 days from chargeback date by doing one of the following:

* Respond to the chargeback via PartnerHub or PayHub. You should send a detailed rebuttal addressing all claims and whether you issued a full or partial credit. If you issued partial credit, explain why. Include as much documentation as possible including signed invoices or receipts, photos, written correspondences, and so on to defend your case.
* [POST response to Chargeback or Return](/developers/api-reference/chargebacks/add-response-to-chargeback-or-return)
* Ask the paypoint call the Payabli Chargeback Hotline at 213-282-7272 extension 2 to have a support representative help them with the process.

The chargeback process can differ between payment processors, but it traditionally takes between 60 and 90 days to resolve a chargeback fully.

### Chargeback documentation requirements

To successfully defend a chargeback, you must provide comprehensive documentation that proves the transaction was legitimate and authorized. The required documentation varies by transaction type, but you should always include certain baseline documentation regardless of the dispute reason.

#### Baseline documentation requirements

Every chargeback response should include these basic documentation types:

* **Transaction receipt**: A copy of the original receipt with the date, time, transaction amount, and description of purchased items
* **Customer communication**: All correspondence with the customer, including emails, chat logs, or text messages. This shows you attempted to resolve the issue before the chargeback was filed
* **Terms and conditions**: A copy of your refund, return, or cancellation policy, with clear indication the customer agreed to these terms at purchase. A screenshot of the checkout page with the policy and "click to accept" button is powerful evidence
* **Dispute notification**: The chargeback notification document itself, which includes response instructions and the specific reason code

#### Transaction-specific documentation requirements

These next sections outline additional documentation types that may be required based on the nature of the transaction. Providing the right evidence tailored to the transaction type can improve your chances of winning a chargeback dispute.

##### For in-person (card-present) transactions

Here are additional documentation types for card-present transactions.

<div>
  <table>
    <thead>
      <tr>
        <th>
          Documentation Type
        </th>

        <th>
          Requirements
        </th>

        <th>
          Purpose
        </th>
      </tr>
    </thead>

    <tbody>
      <tr>
        <td>
          Signed receipt or contract
        </td>

        <td>
          Physical receipt or contract with customer's signature
        </td>

        <td>
          Powerful evidence to counter fraud claims
        </td>
      </tr>

      <tr>
        <td>
          Cardholder information
        </td>

        <td>
          Copy of customer's photo ID (if collected) and point-of-sale data
        </td>

        <td>
          Proves customer identity and presence
        </td>
      </tr>

      <tr>
        <td>
          Secure payment method
        </td>

        <td>
          Documentation of chip & PIN/tap to pay usage
        </td>

        <td>
          Demonstrates secure transaction processing
        </td>
      </tr>
    </tbody>
  </table>
</div>

Card-not-present transactions are covered in the next section.

##### For online (card-not-present) transactions

Here are additional documentation types for different kinds of card-not-present transactions.

<div>
  <table>
    <thead>
      <tr>
        <th>
          Transaction Type
        </th>

        <th>
          Requirements
        </th>

        <th>
          Purpose
        </th>
      </tr>
    </thead>

    <tbody>
      <tr>
        <td>
          Subscription-based services
        </td>

        <td>
          • Subscription agreement and terms of service with autorenewal disclosure<br />
          • Order confirmation email<br />
          • Payment authorization<br />
          • Usage and access logs<br />
          • Customer communication (renewal reminders, welcome emails)<br />
          • AVS/CVV match and IP address data
        </td>

        <td>
          Highlight auto-renewal disclosure and prove ongoing service usage
        </td>
      </tr>

      <tr>
        <td>
          Services, rentals, and dues payments
        </td>

        <td>
          • Signed contract or work order<br />
          • Proof of service delivery<br />
          • Payment authorization<br />
          • Usage logs (login or download records)<br />
          • IP address match<br />
          • Customer communication<br />
          • AVS/CVV confirmation
        </td>

        <td>
          Demonstrate actual service access or delivery
        </td>
      </tr>

      <tr>
        <td>
          General card-not-present requirements
        </td>

        <td>
          • Transaction receipt<br />
          • Customer communication<br />
          • Terms and conditions<br />
          • Customer authentication data (AVS/CVV)<br />
          • Cardholder information (if collected)<br />
          • Secure payment method documentation
        </td>

        <td>
          Focus on proving authorization and legitimate transaction
        </td>
      </tr>
    </tbody>
  </table>
</div>

#### Quick reference for common scenarios

Use these documentation checklists based on your transaction type to help you prepare a strong chargeback response.

<AccordionGroup>
  <Accordion title="Service transactions (one-time or recurring)">
    * Signed agreement or service contract: Include terms, pricing, and customer signature/date
    * Service completion evidence: Work orders, service tickets, technician logs, or photos (if applicable)
    * Customer communication: Emails, messages, or recorded calls confirming service delivery
    * Payment authorization proof: Signed payment form, terminal receipt, or recurring authorization
    * Billing descriptor match: Proof descriptor matches what was disclosed to the customer
  </Accordion>

  <Accordion title="Subscription-based services (memberships, programs)">
    * Subscription agreement/terms of service: Highlight autorenewal or recurring billing disclosure
    * Usage/access logs: Records showing the customer logged in or accessed resources
    * Customer communication: Renewal reminders, welcome emails, or acknowledgements
    * Cancellation policy evidence: Proof policy was disclosed and if cancellation was before charge
    * Payment authorization: Recurring billing consent and last authorization date
  </Accordion>

  <Accordion title="Donation transactions (nonprofits)">
    * Donation receipt: With amount, date, and donor details
    * Donation form/pledge agreement: Signed or accepted online
    * Payment authorization: Donation agreement or confirmation page
    * Communications: Thank-you letters, emails, or event attendance records
    * Billing descriptor match: Proof donor was informed of descriptor
  </Accordion>

  <Accordion title="HOA payments">
    * HOA payment statement or invoice: Showing homeowner name, address, and amount due
    * Proof of payment authorization: Signed payment form or recurring authorization
    * HOA account ledger: Showing the payment posted to the correct homeowner account
    * Communications: Emails or letters confirming payment arrangement or dues schedule
  </Accordion>

  <Accordion title="Storage unit payments">
    * Storage unit rental agreement: Showing tenant name, unit number, rental term, and payment schedule
    * Proof of payment authorization: Signed rental agreement or recurring billing consent
    * Access logs: Showing tenant entry to facility/unit after payment
    * Communications: Emails or letters confirming rental terms or payment receipt
  </Accordion>

  <Accordion title="Customer authentication & fraud prevention data (all types)">
    * AVS match: Proof billing address matches issuer's records
    * CVV confirmation: Record CVV entered correctly
    * IP address & device data: Matches known customer information
    * Date/time stamp of authorization: Gateway logs or terminal receipt
  </Accordion>
</AccordionGroup>

<Note>
  For additional guidance, Payabli recommends referencing Visa's compelling documentation examples on page 691 of [this PDF](https://usa.visa.com/content/dam/VCOM/download/about-visa/visa-rules-public.pdf).
</Note>

### Preventing chargebacks

You can take steps to help lower your risk of chargebacks. First, give stellar customer service. Be prompt in responding to customer emails and calls, and be willing to work with them to make them happy. For example, if the customer wants a refund, but you don't want to give them one, find some other way to make them happy. You want to prevent them from opening a dispute the charge with their card issuer.

Second, keep good records! Keep documentation of every interaction you have with a customer. This documentation can make the difference in whether you lose or win a dispute.

Other tips for avoiding chargebacks include:

* If the authorization request was declined, don't try to make another authorization. Wait at least 24 hours before reattempting the transaction.
* Always obtain cardholder signatures.
* Refund any duplicate or incorrectly entered transactions immediately.
* Share your return, refund, or cancellation policies to the cardholder at the time of transaction by including it on the receipt or invoice. Obtain confirmation of acknowledgment of these policies.
* Process refunds quickly to prevent customers from opening an dispute.
* Respond to requests to cancel recurring payments immediately.
* For services rendered, having photographic evidence can be used as supporting documentation in a dispute.

### Card brand reason codes references

Each card brand has its own set of chargeback reason codes.

#### Visa

These are the return codes for Visa codes.

{/* vale Payabli.Acronyms = NO */}

{/* vale Payabli.ComplexWords["Incorrect", "Provide", "Additional"] = NO */}

| Reason Code | Description                                   |
| ----------- | --------------------------------------------- |
| 10          | FRAUD                                         |
| 10.1        | EMV Liability Shift, Counterfeit Fraud        |
| 10.2        | EMV Liability Shift, Non-counterfeit Fraud    |
| 10.3        | Other Fraud, Card Present Environment         |
| 10.4        | Other Fraud, Card Absent Environment          |
| 10.5        | Visa Fraud Monitoring Program                 |
| 11          | AUTHORIZATION                                 |
| 11.1        | Card Recovery Bulletin                        |
| 11.2        | Declined Authorization                        |
| 11.3        | No Authorization                              |
| 12          | PROCESSING ERRORS                             |
| 12.1        | Late Presentment                              |
| 12.2        | Incorrect Transaction Code                    |
| 12.3        | Incorrect Currency                            |
| 12.4        | Incorrect Account Number                      |
| 12.5        | Incorrect Amount                              |
| 12.6        | Duplicated Processing/Paid by Other Means     |
| 12.7        | Invalid Data                                  |
| 13          | CONSUMER DISPUTES                             |
| 13.1        | Merchandise/Services Not Received             |
| 13.2        | Canceled Recurring                            |
| 13.3        | Not as Described or Defective                 |
| 13.4        | Counterfeit Merchandise                       |
| 13.5        | Misrepresentation                             |
| 13.6        | Credit Not Processed                          |
| 13.7        | Canceled Merchandise/Services                 |
| 13.8        | Original Credit Transaction Not Accepted      |
| 13.9        | Non-receipt of Cash or Load Transaction Value |

#### Mastercard

These are the reason codes for Mastercard cards.

{/* vale Payabli.Contractions = NO */}

| Reason Code | Description                                                     |
| ----------- | --------------------------------------------------------------- |
| 2           | Requested/Required Information Illegible or Missing             |
| 7           | Warning Bulletin File                                           |
| 8           | Requested/Required Authorization Not Obtained                   |
| 12          | Account Number Not On File                                      |
| 31          | Transaction Amount Differs                                      |
| 34          | Duplicate Processing                                            |
| 35          | Card Not Valid or Expired                                       |
| 37          | No Cardholder Authorization                                     |
| 40          | Fraudulent Processing of Transactions                           |
| 41          | Cancelled Recurring Transaction                                 |
| 42          | Late Presentment                                                |
| 46          | Correct Transaction Currency Code Not Provided                  |
| 47          | Exceeds Floor Limit, Not Authorized, and Fraudulent Transaction |
| 49          | Questionable Merchant Activity                                  |
| 50          | Credit Posted as a Purchase                                     |
| 53          | Cardholder Dispute, Defective / Not as Described                |
| 55          | Non-receipt of Merchandise                                      |
| 57          | Card-Activated Telephone Transaction                            |
| 59          | Services Not Rendered                                           |
| 60          | Credit Not Processed                                            |
| 62          | Counterfeit Transaction Magnetic Stripe POS Fraud               |
| 63          | Cardholder Does Not Recognize-Potential Fraud                   |

{/* vale Payabli.Contractions = NO */}

#### AMEX

These are the chargeback reason codes for American Express cards.

| Reason Code | Description                                            |
| ----------- | ------------------------------------------------------ |
| 16          | Credit Purchase Amount, Damaged Goods                  |
| 93          | Charge Origination Unknown                             |
| 024         | Return Authorization, Damaged Goods                    |
| 030         | Merchandise Defective, Credit Requested                |
| 059         | Repair Damaged Goods                                   |
| 063         | Dissatisfied Customer                                  |
| 127         | No Purchase Made                                       |
| 155         | No Merchandise Received                                |
| 175         | Duplicate Charge                                       |
| 176         | No Knowledge of Charge                                 |
| 177         | Authorization Not Given                                |
| 193         | Fraudulent Charges                                     |
| 680         | Overcharged                                            |
| 691         | Provide Documentation                                  |
| 712         | Services Not Provided                                  |
| 4544        | Recurring Subscription Cancellation                    |
| A01         | Charge Amount Exceeds Authorization Amount             |
| A02         | No Valid Authorization                                 |
| A03         | Authorization Approval Expired                         |
| A04         | Merchant Failed to Call                                |
| C02         | Insufficient Credit                                    |
| C04         | Goods/Services Returned or Refused                     |
| C05         | Goods/Services Canceled                                |
| C06         | History of Chargebacks, Chance to Resolve              |
| C08         | Goods/Services Not Received or Only Partially Received |
| C10         | Continuing to Bill                                     |
| C14         | Paid by Other Means                                    |
| C18         | No Show or CARDeposit Canceled                         |
| C28         | Canceled Recurring Billing                             |
| C31         | Goods/Services Not as Described                        |
| C32         | Goods/Services Damaged or Defective                    |
| C42         | Card Not Present Fraud                                 |
| F10         | Missing Imprint                                        |
| F14         | Missing Signature                                      |
| F22         | Expired or Not-yet Valid Card                          |
| F24         | No Card Member Authorization                           |
| F28         | Ticket/Mail Fraud                                      |
| F29         | Card Not Present                                       |
| F30         | In Possession–Unauthorized                             |
| FR2         | Fraud Full Resource Program                            |
| FR4         | Immediate Chargeback Program                           |
| FR6         | Partial Immediate Chargeback Program                   |
| M01         | Merchant Initiated–Fraud Suspicions                    |
| M10         | Vehicle Rental, Capital Damages                        |
| M36         | All Encompassing                                       |
| M49         | Vehicle Rental, Theft or Loss of Use                   |
| P01         | Unassigned Card Number                                 |
| P03         | Credit Processed as Charge                             |
| P04         | Charge Processed as Credit                             |
| P05         | Incorrect Charge Amount                                |
| P07         | Late Submission                                        |
| P08         | Duplicate Charge                                       |
| P22         | Non-matching Card Number                               |
| P23         | Currency Discrepancy                                   |
| R03         | Insufficient Reply                                     |
| R13         | No Reply                                               |

#### Discover

These are the chargeback reason codes for Discover cards.

| Reason Code | Description                                                                             |
| ----------- | --------------------------------------------------------------------------------------- |
| AL          | Airline Transaction Dispute                                                             |
| AP          | Automatic Payment                                                                       |
| AW          | Altered Amount                                                                          |
| CA          | Cash Advance Dispute                                                                    |
| CD          | Credit Posted as Card Sale                                                              |
| CR          | Canceled Reservation                                                                    |
| DA          | Declined Authorization                                                                  |
| DP          | Duplicate Processing                                                                    |
| DP1         | ATM Duplicate Processing                                                                |
| EX          | Expired Card                                                                            |
| IC          | Illegible Sales Data                                                                    |
| IN          | Invalid Card Number                                                                     |
| IS          | Missing Signature                                                                       |
| LP          | Late Presentment                                                                        |
| N           | Discover Network ATM Transaction, No Funds Dispersed                                    |
| NA          | No Authorization                                                                        |
| NC          | Not Classified                                                                          |
| P           | Discover Network ATM Transaction, Partial Funds Dispersed                               |
| RG          | Non-receipt of Goods or Services                                                        |
| RM          | Cardholder Disputes Quality of Goods or Services                                        |
| RN1         | Additional Credit Requested                                                             |
| RN2         | Credit Not Received                                                                     |
| SV          | Stored Value Dispute                                                                    |
| TF          | Dispute Initiated by Discover Network for Violation of Operating Regulations            |
| TNM         | Discover Network ATM Transaction, Transaction Improperly Posted to Cardholder's Account |
| UA01        | No Authorization                                                                        |
| UA02        | Declined Authorization                                                                  |
| UA32        | Address Verification Service Failure, Card Not Present Card Transaction                 |
| UA99        | Non-compliance with Operating Regulations                                               |
| UA03        | Sale Exceeds Authorization Amount                                                       |
| UA10        | Request Transaction Receipt for Swiped Card Transaction                                 |
| UA11        | Swiped Card Transaction, No Signature                                                   |
| UA1         | Swiped Card Transaction, Invalid Signature                                              |
| UA18        | Swiped Card Transaction, Illegible Copy                                                 |
| UA20        | Request Transaction Documentation for Keyed Card Transaction                            |
| UA21        | Keyed Card Transaction, No Signature                                                    |
| UA22        | Keyed Card Transaction, Invalid Signature                                               |
| UA23        | Keyed Card Transaction, Invalid Imprint                                                 |
| UA28        | Keyed Card Transaction, Illegible Copy                                                  |
| UA30        | Request Transaction Document for Card Not Present Transactions                          |
| UA31        | Card Not Present Card Transaction, Invalid Proof of Delivery                            |
| UA38        | Card Not Present Card Transaction, Illegible Copy                                       |

{/* vale Payabli.ComplexWords["Incorrect", "Provide", "Additional"] = NO */}

## ACH disputes

Disputes happen when a customer's bank reverses an ACH debit for reasons like an unauthorized or duplicated transaction, or the wrong amount. ACH disputes work like ACH returns, but they're similar to credit card chargebacks. This is because the customer disputes the transaction and involves their financial institution to recover their funds from the merchant.

There's nothing Payabli can do to help with an ACH dispute, and banks typically side with the customer. There's no formal process for dispute resolution available to you as a merchant within the ACH Network.

Disputes are a type of ACH return identified by one of these return codes: R05, R07, R10, R29. See [ACH Return Codes](/guides/platform-ach-return-codes-reference) for full descriptions of each of these codes.

### Handling an ACH dispute

When a customer opens an ACH dispute, you receive an ACH return with one of the dispute-related codes. The funds are automatically taken from your account and returned to the customer's account, and like with other returns and chargebacks, you are charged an ACH dispute fee.

Although there isn't much you can do as a merchant in a dispute, you should immediately suspend any recurring payment schedules for the bank account. This prevents other transactions from being returned while you address the issue with the customer. Contact the customer and resolve any issues that caused them to dispute the transaction.

If you think the dispute was in error, you can reach out to the customer and ask them to retract the dispute with the bank. If you do this, get written authorization from the customer before charging them again.

If the customer claims the transaction wasn't authorized, but you have proof that it was correctly authorized, you may consider small claims court as a last resort. You can help protect yourself in an ACH disputes by getting written authorization for a transaction, and offering detailed receipts. Written authorization could be a signed agreement, a confirmation email, or a clear agreement they must check during checkout. Every receipt should include the date, the sale amount, the sale description, and contact information.

However, there's no guarantee that you'll recover the money, and be aware that Payabli doesn't participate in the small claims process. Seek legal advice if you want to go this route.

## ACH returns

ACH transfers are electronic, bank-to-bank money transfers processed through the Automated Clearing House Network.

An ACH return is a message from the check writer's bank that lets the ODFI (Originating Depository Financial Institution) know the ACH Network couldn't make the deposit or collect funds from the receiver's account (RDFI- Receiving Depository Financial Institution). Typically, an ACH return comes from the RDFI, but in some instances the ODFI or even the ACH operator itself might send a message.

Returns can happen for several reasons, and ACH return codes help identify why an ACH was returned. You can refer to the [ACH Return Codes table](/guides/platform-ach-return-codes-reference) for a full list of the various codes.

### Handling ACH returns

How you handle a return depends on the ACH return code. ACH Returns should complete within 2 banking days. However, some returns may take up to 60 days for the RDFI to initiate the return. The paypoint should contact the customer to address why the return happened and request that the customer contact their bank to have the transaction to go through. The [ACH Return Codes table](/guides/platform-ach-return-codes-reference) gives more details on how to handle each kind of ACH return.

It's important that paypoints limit their ACH Returns to certain thresholds:

* Administrative Returns: Must stay below 3% for a rolling 60 day period.
* Unauthorized Returns: Must stay below .5% for a rolling 60 day period.
* Overall Returns must stay below 15% for a rolling 60 day period.

## Chargebacks and ACH return statuses

If you work with chargebacks or ACH returns via the Payabli API, you can check the status in the response data as `Status`. For example,  `"Status": 0` means that the chargeback is open.

<div>
  <table>
    <thead>
      <tr>
        <th>
          Value
        </th>

        <th>
          Key
        </th>
      </tr>
    </thead>

    <tbody>
      <tr>
        <td>
          Open (Chargebacks only)
        </td>

        <td>
          0
        </td>
      </tr>

      <tr>
        <td>
          Pending (Chargebacks only)
        </td>

        <td>
          1
        </td>
      </tr>

      <tr>
        <td>
          Closed-Won (Chargebacks only)
        </td>

        <td>
          2
        </td>
      </tr>

      <tr>
        <td>
          Closed-Lost (Chargebacks only)
        </td>

        <td>
          3
        </td>
      </tr>

      <tr>
        <td>
          ACH Return (ACH only)
        </td>

        <td>
          4
        </td>
      </tr>

      <tr>
        <td>
          ACH Dispute, Not Authorized (ACH only)
        </td>

        <td>
          5
        </td>
      </tr>
    </tbody>
  </table>
</div>