When an ACH payment is captured, the authorization gets sent to the bank to authorize the deduction of the funds. Canopy makes it easier to see when an ACH return happens on your account. You can see the status of Returned within the Refunds table.
Canopy Tip: To ensure that you're receiving notifications for ACH returns, you'll need to enable your notifications within your account settings.
You can find this under Settings > Notifications > Billing, and enable notification for "An ACH payment for an assigned client is returned".
Payment Return Codes
Below are the most common ACH return codes followed by a description.
Important Note: When an ACH is returned, there will be a $7.50 fee associated with it. That returned amount and fee are withheld from your next payout for the return
Return Code: | Description: |
R01 | Insufficient Funds |
R02 | Account Closed |
R03 | No Account / Unable to Locate Account |
R04 | Invalid Account Number |
R05 | Unauthorized Debit |
R08 | Stopped Payment |
R16 | Account Frozen |
R20 | Non-Transaction Account |
R29 | Not Authorized by Corporate Customer |
Chargebacks
Tips to Prevent Chargebacks
Make sure you are working with trustworthy clients.
Clear Terms and Conditions.
Authorized Signed Document(s) that they have agreed to the terms/conditions, services, and payment agreement.
Valid Communications with your Client.
Make sure to be as clear as you can be on your invoices for what is being charged.
Handling a Dispute
Important Note: When a payment is disputed, there will be a $7.50 fee associated with it.
Payments with a chargeback appear with a "Disputed" status in the Canopy payment receipts table.
You will receive an email from Canopy notifying you of the chargeback with a list of the documentation needed to dispute the chargeback. It is important that you respond promptly due to each card type having different timelines of how much time there is to defend the dispute.