Returned bank payments and disputes
What happens when a member's bank sends back a bank payment (an ACH return) or a member disputes a card payment, what it costs your chapter, and what to do.
Sometimes money a member paid gets taken back after the payment looked done. For a bank payment that's an ACH return. For a card payment it's a dispute (also called a chargeback). This page explains what each one changes and what chapter admins should do.
What an ACH return is
An ACH return is when the member's bank sends back a bank (ACH) payment. Common reasons are not enough money in the account, a closed or wrong account, or the account holder telling their bank they didn't approve the payment. The reason shows on the payment as its Decline Reason.
A bank payment can show Succeeded and still be returned later. Most returns come within a few business days. Some, such as an account holder saying they didn't approve the payment, can come weeks later.
What changes when a bank payment is returned
- The payment changes to Failed on Payments, with the bank's reason.
- The member owes the amount again. It's added back to the charges the payment covered. If those charges are past due and your chapter has late fees turned on, a late fee can be added.
- A payment plan is canceled. If the returned payment was a payment plan installment, the installment is marked Failed and the plan is canceled. Returned bank payments aren't retried.
- Your payout is lower. The returned amount comes out of a payout, with an ACH return fee. In the payout breakdown it shows under ACH returns & disputes as "[charge type] · ACH return", and the fee under Fees as ACH return fees. A returned convenience fee shows as Convenience fees returned. See See what's in a payout. The fee amount is listed at mygreek.us/fees.
Who is notified about a returned payment
- The member (and the parent or other payer, if they made the payment) gets an email, Payment Returned - Action Required. It says the payment was marked as declined and asks them to log in and pay again or contact their treasurer.
- Chapter admins get an email, ACH Payment Returned - [member name], with the payment, charges, amount and reason, plus a push notification in the mobile app. Each admin can turn these off with ACH Returns under Settings → Admin Notifications.
The same notices go out when a bank payment fails before it ever succeeds.
What to do about a returned payment
- Open Payments, find the payment (it now shows Failed) and check its Decline Reason.
- Contact the member. They need to pay again, with another bank account or a card if the reason was a closed or invalid account.
- If it was a payment plan installment, the plan was canceled. The member can propose a new plan, or you can offer one. See How payment plans work.
- If a late fee was added because of the return and you want to waive it, reverse it. See Reverse (waive) a late fee.
You can't retry a returned payment from MyGreek. The member has to make a new payment.
What a card dispute is
A dispute is when a cardholder asks their card company to reverse a card payment, for example because they don't recognize it or say they were charged by mistake.
When a member disputes a payment:
- The disputed amount comes out of a payout, with a chargeback fee. In the payout breakdown it shows under ACH returns & disputes as "[charge type] · disputed", and the fee under Fees as Chargeback fees. The fee amount is listed at mygreek.us/fees.
- If the dispute is decided in your chapter's favor, the money is added back to a later payout as "[charge type] · dispute won back". A convenience fee given back shows as Convenience fees won back.
MyGreek doesn't send an email or notification when a card payment is disputed, and the payment keeps showing Succeeded. The member's balance doesn't change, so it still looks paid. You'll usually first see a dispute in your payout.
What to do about a dispute
You can't respond to a dispute in the app. As soon as you see one in a payout, email support@mygreek.us with the member's name and the payment. Support can tell you whether the dispute can be contested and what proof is needed.
Check with support before you bill the member again for a disputed amount, so they aren't charged twice if the dispute is decided in your favor.
Common questions
Why did our payout come out negative?
When returns, disputes and refunds add up to more than members paid in that payout, the difference is withdrawn from your chapter's bank account. See How payouts work.
The member says they had money in the account. What now?
The reason comes from their bank. Ask them to check with their bank, then pay again. If they pay from the same account, it can be returned again.
Is this the same as a payout being returned?
No. A returned payout is when your chapter's bank sends back money MyGreek sent you. See A payout was returned by your bank.
Related
Refunds
Send all or part of a payment back to the member's card or bank account, choose whether to refund the processing fee, and know what happens to the balance and your payout.
Collections
Refer a member's unpaid balance to a collections agency through MyGreek, what it costs your chapter, and what changes for the member and for you afterwards.