Split Payment Chargebacks and Returns
Learn how Payabli handles chargebacks and ACH returns for split transactions
In a split funded transaction, a part of the original transaction amount funds to one bank accounts and part funds to another account.
General flow
Here’s how Payabli handles ACH returns and chargebacks for split transactions.
- Payabli receives an ACH return or chargeback for a payment to the merchant who originated the transaction.
- Because of how transaction authorizations work, when there is a return or chargeback, Payabli removes the entire amount from the origination merchant’s Payabli ledger. Payabli then reverses the original split instructions and transfers any split funds that were sent to the other accounts from those accounts back to the origination merchant.
Because fees are non-refundable, they’re not returned to merchants in the event of a return or chargeback. See Pass-through Fees for more information.
Examples
The following examples show how funds move between accounts when a chargeback or return is applied to a split transaction.
Original Transaction: A school receives tuition payment of $10000, with $8000 going to its main account and $2000 to a partner account.
ACH Return: The student’s payment is returned for fraud.
Payabli’s Action: Payabli reverses the total $10000 from the school’s Payabli ledger. Payabli then transfers $2000 from the partner ledger to the school’s account. Finally, Payabli removes $8000 from the school’s account and $2000 from the partner’s account to reconcile their Payabli ledgers.
Was this page helpful?