How to handle ACH returns

An ACH return happens when an ACH payment that has already settled is then returned.

This is different from ACH payments that fail during processing. A return means the funds were initially received and then sent back.

This guide explains what causes ACH returns, how they differ from card chargebacks, and what steps to take.

• How ACH returns differ from card chargebacks
• Why ACH returns happen
• What to do

ACH Payments are only availabe for the innRoad Payments gateway. Contact support@innroad.com to learn more.

How ACH returns differ from card chargebacks

ACH returns and card chargebacks both result in funds being taken back from your property, but the process is significantly different.

ACH returns are final. Unlike card chargebacks, there is no appeal process. 

If a guest's bank returns a payment, you will need to re-collect them directly from the guest.

Why ACH returns happen

A return can be initiated by the payer or their bank for several reasons, even after a payment moved into a Captured status:

• Unauthorised payment: the guest claims they did not authorise the debit. This is the most common reason for returns on personal accounts and carries the longest dispute window.
• Authorisation revoked: the guest had previously authorised payments but subsequently cancelled that authorisation.

Returns on business accounts must be initiated within 2 business days of the debit. Returns on personal accounts can be initiated up to 60 calendar days later. If you have not heard from a guest within 60 days of a settled ACH payment, the risk of a return for that payment is effectively zero.

How you are notified

When an ACH return is received, innRoad will:

• Send an email notification to the property's registered billing contact.
• Update the transaction status in the Payments Dashboard to Returned.
• Deduct the returned amount, plus any associated return fee.
• Invalidate the guest's saved bank account, which can no longer be used for future payments.

A return fee applies to ACH returns, separate from the original processing fee. .

What to do

Because ACH returns cannot be contested, the focus is entirely on re-collecting the outstanding balance from the guest.

1. Check the reservation balance. Open the reservation in innRoad and confirm the amount now outstanding. The folio will reflect the returned payment.
2. Do not issue a separate refund. If the guest's bank has already initiated a return, the guest will receive the funds back automatically. Issuing an additional refund from innRoad could result in the guest receiving a double credit for the same amount.
3. Contact the guest promptly. Explain that the payment was returned by their bank and that an outstanding balance remains on their reservation. In some cases the guest may not be aware the return occurred.
4. Re-collect payment.Because the guest's saved bank account has been invalidated, you will need to collect payment by an alternative method:
   • A new Payment Link sent to the guest.
5. Review the reservation status. If the check-in date is approaching and you have not been able to re-collect payment, follow your property's standard policy for unpaid reservations.

Blocked accounts

If a guest initiates more than one return from the same bank account, innRoad Payments will block that account from being used for future payments entirely. This is a NACHA compliance requirement and cannot be overridden by innRoad.

If a guest's account is blocked and they wish to pay by ACH again, they will need to link a different bank account. Otherwise, collect payment by card or Payment Link.