Processing an ACH dispute

  • Release version: Australia
  • Updated March 12, 2026
  • 2 minutes to read
    • Summarize
    Summarized using AI
    This content was generated using new OpenAI-powered functionality. Results are provided on an as is basis and are not guaranteed to be accurate or complete.

    Summary of Processing an ACH dispute

    The Processing tab in the card disputes playbook provides a dashboard displaying all disputed transactions within an ACH dispute case. It offers key transaction details such as dispute amount, date and time, merchant information, transaction state, current activity, and activity SLA. The Investigate stage focuses on managing tasks related to reviewing and resolving disputed ACH transactions according to established rules and guidelines.

    Show full answer Show less

    Key Features

    • Evaluate merchant analysis: Assess merchant credibility to determine the legitimacy of the disputed ACH transaction.
    • Provide provisional credit to customer: Issue a temporary credit to the account holder while the dispute is being investigated.
    • Evaluate Nacha guidelines: Verify the dispute against Nacha operating rules, ensuring required documentation like a valid Written Statement of Unauthorized Debit (WSUD) is present.
    • Review ACH dispute return recommendation: Decide on the final action—deny the dispute and reverse provisional credit, file a return to initiate a refund, or request additional information from the Originating Depository Financial Institution (ODFI).
    • Dispute communication initiation: Send decision communications to customers or ODFI based on the final action taken.
    • Verify supporting documents: Confirm documentation received from customers or ODFI when additional evidence is required to support dispute resolution.
    • File ACH return: Submit a refund request for eligible ACH disputes.
    • Settle payment with customer: Complete financial adjustments so customers receive appropriate funds after dispute resolution.
    • Reverse provisional credit: Remove temporary credits issued when disputes are denied.

    Key Outcomes

    Using this process, ServiceNow customers can efficiently manage ACH dispute workflows, ensuring compliance with Nacha rules and proper handling of transaction investigations. Customers benefit from timely provisional credits, clear communication throughout the dispute lifecycle, and accurate financial settlements. This structured approach helps minimize risk, maintain regulatory compliance, and enhance customer trust by transparently resolving ACH disputes.

    On the Processing tab of the card disputes playbook, all disputed transactions in an ACH dispute case are displayed on a dashboard. The tab also provides transaction information such as dispute amount, transaction date and time, merchant, transaction state, current activity, and activity SLA.

    The Investigate stage displays the dispute tasks related to investigating the disputed ACH transaction.

    The Investigate stage of the disputed transaction includes the following tasks:

    Task Description
    Evaluate merchant analysis

    Evaluate the merchant credibility to help validate the disputed ACH transaction.
    Provide provisional credit to customer Provide a temporary provisional credit to the account holder while the dispute is investigated.
    Evaluate Nacha guidelines

    Evaluate the Nacha (National Automated Clearing House Association) operating guidelines to verify that a disputed ACH transaction meets the Nacha operating rules for return eligibility by verifying required documentation such as a valid Written Statement of Unauthorized Debit (WSUD).
    Review ACH dispute return recommendation Review the ACH dispute information and determine the final action.
    • Deny: The ACH dispute is determined to be invalid and is denied. The provisional credit is reversed.
    • File return: The ACH dispute is determined to be valid and meets eligibility for return. A refund is initiated.
    • Follow up ODFI: More information is required from the ODFI before a refund can be either denied or issued.
    Dispute communication initiation Provide a response and feedback to the customer for a decision made on a dispute.

    This communication is sent to customers if the final action taken is either File return or Deny customer. If Follow up ODFI is the final action, the communication is sent to ODFI (Originating Depository Financial Institution).
    Verify customer supporting documents After communicating dispute denial to a customer, if a customer denies the decision to decline a dispute, they’ll be asked to provide support documentation along with their response. Verify the supporting documents that you received from the customers.
    Verify ODFI supporting documents After following up with ODFI (Originating Depository Financial Institution) to request further documentation about the dispute, verify the supporting documents that you received.
    File ACH return File a refund for an ACH dispute when the dispute has been determined to be eligible.
    Settle payment with customer Complete the financial adjustment so that the customer receives the appropriate funds after the dispute is resolved.
    Reverse provisional credit Reverse the temporary credit issued by the bank to the account holder in case of denial.