This article explains how Dutchie's Pay by Bank (PBB) ACH returns and retries work. Dispensaries don't deal with ACH returns directly, but your customers may contact you with questions or concerns about them. Use this guide to understand what happened and how to respond.

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An ACH return works like a bounced check. A customer provides their bank information to pay for an order, and the payment initially appears to go through. Later, the customer's bank determines the payment can't be completed and sends it back, which cancels out the original transaction.

There are many possible reasons for a return. The most common one for PBB transactions is insufficient funds (return code R01).

Money does not leave the customer's bank account instantly the way it does with other payment types. Dutchie also does not place an authorization hold on the customer's funds. Here is how the process works:

1. A balance check is run at several points during the ordering process.
2. Transactions aren't sent to the customer's bank right away. They are sent once the transaction is batched, which can take up to the next business day. This is when the bank actually validates the account.
3. If the bank can't complete the payment, the payment is returned. For example, a customer may have had enough funds when the balance check was completed but spent them before the bank processed the payment, which results in an insufficient funds return. A closed account is another possible reason.

Customers may see a debit for the original payment attempt, followed by a credit when the transaction is returned. This can look like a double charge or an unexpected transaction.

Yes, any transaction your team can see on the PBB back office report, the Dutchie Pay Settlement Report, is included in your PBB settlement and deposited to your account.

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A retry is another attempt to collect funds for a returned transaction. Retries apply when the original attempt was returned for insufficient funds.

Transactions returned for insufficient funds are retried automatically. Up to two attempts to recollect the funds can be made within 180 days.

1. The budtender finalizes the order by tapping Complete on the POS checkout panel. An order is only finalized, and your dispensary is only paid, when Complete is pressed.
2. The transaction is batched, which can take up to the next business day, and Dutchie then attempts to withdraw the funds from the customer's bank account.
3. If the funds can't be collected, an ACH return is created and Dutchie is notified. A temporary block is placed on the customer's PBB account until the funds are successfully collected.
4. The next business day after Dutchie receives the return notice from the customer's bank, the transaction enters Dutchie's retry queue. Only transactions returned for insufficient funds enter the queue.
5. Transactions can enter the queue on any business day, but the queue itself only runs Monday through Thursday. During each run, a balance check is completed. If funds are available, a retry is attempted: the transaction is batched and sent for payment. If not, it stays in the queue until a balance check succeeds.
6. The customer is unblocked 3 business days after the payment is successfully collected. If the first retry fails, the account stays blocked and the transaction re-enters the queue the next business day for a final attempt.

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Customers with a returned transaction have their PBB account blocked. The block starts after Dutchie receives the return notice from the customer's bank, not at the time of purchase. If they try to use PBB while blocked, they see this message:

Dutchie also notifies the customer when a transaction is returned, when it will be retried, and whether the retry was successful or not.

Let the customer know that their bank returned the original payment and explain the retry process: Dutchie will automatically try to collect the funds, with up to two attempts within 180 days, and the account is unblocked 3 business days after the funds are successfully collected.

Then advise the customer to reach out to Dutchie Support. They will need to provide the email address associated with their Pay by Bank account.

Yes. A retried transaction should appear on the customer's bank statement as a variation of "Retry PYMT."

Many customers don't closely watch their bank balance, so a retried debit can catch them by surprise. Your team should be able to recognize when a customer's concern is likely caused by an ACH return and retry. Common examples:

Concern	What the Customer Might Say
Double charge	Maria calls the dispensary: "I was double charged for my Pay by Bank transaction!"
Unrecognized charge	John emails the dispensary: "I'm worried about a fraudulent/unauthorized charge from Pay by Bank that just hit my account on [MM/DD/YY] for [$x]. I wasn't even in the store that day!"
Outstanding balance message	Lucy tries to pay in store with Pay by Bank and sees the F103 "outstanding balance" message. She tells the budtender, "But I have the receipt, I know I paid for it. How could it be outstanding?"