Direct Debit Returns

When an account holder disputes a previously approved direct debit transaction, or when the bank can't authorize a direct debit transaction due to insufficient funds or a closed account, the bank issues a direct debit return. Blackbaud Merchant Services automatically refunds returned direct debit transactions to the account holder.

At times, account holders may dispute the validity of transactions with the bank. When this occurs, your account may receive a request for a direct debit return.

From Transactions, under Direct debit returns, you can view these transactions and manage any direct debit returns that require input from your organization (such as collateral to determine the validity of a disputed transaction).

Note: In lists and reports, direct debit returns that occur due to failed transactions appear as two line items: one labeled Direct Debit Return, and another labeled Adjustment, which includes the return fees.

For more information, see Debit Return Reasons.