How do disputes, refunds, and ACH returns impact the merchant payout?

Disputes, refunds, and ACH returns each affect your payout differently, as they represent funds being pulled back from a previously processed transaction. Here’s a breakdown of how each impacts the payout amount:

• Disputes: When a customer initiates a dispute (also known as a chargeback), the disputed amount is deducted from your payout. If the dispute is resolved in your favor, the funds may be returned in a future payout. However, if the dispute is lost, the funds remain permanently deducted, along with any applicable dispute fees.
• Refunds: When you process a refund, the refunded amount is subtracted from their next payout. This ensures that funds returned to customers are balanced against your available payout amount. If a refund exceeds the current payout, it may result in a negative payout balance, which could be deducted from a future payout or directly from your bank account.
• ACH Returns: An ACH return occurs when a previously settled ACH transaction is reversed, often due to issues like insufficient funds or account closure. The amount of the returned ACH transaction is deducted from your payout. If the return exceeds the available payout, similar to refunds, it could result in a negative balance that may be offset in a future payout or withdrawn directly from your bank account.

Fees associated with disputes, refunds, and ACH returns will continue to be collected based on your billing schedule.