The Goal: Understand how ACH refunds work when using GrowthZone Pay as your integrated payment processor.
Before You Begin:
- If you accept ACH payments, the refund process follows the same steps as described in the "Process Refunds - Credit Card Processing - Integrated" article. Review that article for the step-by-step refund workflow.
ACH Refund Behavior with GrowthZone Pay
With GrowthZone Pay, ACH refunds operate differently from credit card refunds. Be aware of the following key differences:
- 90-day window: ACH refunds must be initiated within 90 days of the original payment.
- Longer processing time: Refunds for ACH payments take 4–5 business days to process.
- Statement label: These refunds will be processed as credits labeled "PPD" or "CCD" on the statement.
- Cannot cancel pending debits: Pending ACH Direct Debits cannot be canceled. They must first settle, then be refunded.
- Settle before refunding: A refund can only be processed after the payment has completed. If a refund is initiated immediately after a payment, there will be a 4–5 business-day delay for the charge to settle, followed by another 4–5 business days for the refund transfer to be processed.
Common Pitfalls
- Attempting to cancel a pending debit: You cannot cancel an ACH debit that is still pending — you must wait for it to settle before issuing a refund.
- Timing expectations: Unlike credit card refunds, ACH refunds may take up to 10 business days total (4–5 to settle + 4–5 to refund) if initiated immediately after payment. Set member expectations accordingly.