ACH Return & Dispute Management

This article contains more information on what to do when you receive a Credit Card Dispute (Chargeback), or an ACH return

1. The cardholder contacts the issuing bank and disputes a transaction.
2. A chargeback is initiated and posted to the processor and self-storage facility or organization. The funds are immediately credited back to the cardholder by the issuer and your 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 your organization or facility. If the you have decided to defend yourself, you need to provide the documentation, and the processor forwards it to the issuer. You 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.

• You would need to reach out to the Cubby Customer Success team who can get you in touch with our payment provider to resolve the chargeback with the Bank Issuer of the card holder.
  
  support@cubbystorage.com

Chargeback documentation recommendations

• If the transaction occurred in a card-present environment, submit a copy of the receipt showing card was chip-read or swiped.
• If the card was manually entered, you will need to show a signed receipt providing authorization of the transaction.
• If the transaction was already refunded, you can provide documentation that the refund was successfully processed.
• For digital authorizations (invoices or online payments), you can provide a copy of the invoice, as well as the digitally signed contract.
• If the cardholder agrees to withdraw the chargeback, you can include a letter or email from the cardholder stating they no longer dispute the transaction.

• You can find all of your Disputes and ACH Returns in the Disputes tab under Payments
• Any CC Chargeback or ACH return is immediately shown in there in real-time via direct integration between Cubby and the Payment Service Provider (PSP)
• Also, our PSP sends Cubby Support an email so Cubby CS staff is also aware of the situation and are ready to support you if you decide to Respond to the Chargeback
  
  

 

What fees am I charged for receiving a Dispute or an ACH Return?

These fees are applied directly to your monthly bill by the Payment Service Provider 

• Credit Card Chargeback (disputed charge) - $15.00
• Credit Card Retrieval (similar, but retrieving info, not a full chargeback) - $15.00
• ACH Return (a payment that is rejected by a bank. Usually when a wrong acct # is entered) - $25.00
• ACH Chargeback (disputed charge/NSF) - $35.00

 

What can I do to get my money back

• You can always assign to the tenant a manual charge (fee) with a reason that an ACH return was received related with their ACH payment.

 

What happens to the lease associated with the payment that's associated with the ACH return or the Dispute? 

• The original payment will be failed automatically upon dispute or ach return reception
• The status of the original payment will be changed to "Failed"
• Our system will apply an automatic payment failure accounting logic to ensure that the Paid Through Date, the Outstanding Balance, and the Past due status are updated for the account associated with the failed payment