SwarmPoint

ACH processing allows a business to receive money by directly debiting a consumer or business account directly using the accord number and bank sort code.

The consumer or business is protected from unauthorized debit by having the ability to dispute a payment at their bank for 60 days from the payment. For a period of 60 days during which the authorization of a payment can be disputed or during which they may “revoke authorization”. The consumer should attempt to resolve the matter directly with the supplier but if they are unable to get a response or resolve their issue they may attempt to have the bank return the money. The consumer signs an affidavit and the bank issues a chargeback. The payments processor’s account is debited by the bank and they attempt to obtain the money from the supplying company. If a company fails and large numbers of customers request chargebacks the payments processor can be left with significant losses.