This article is general information, not legal advice. ACH rules, your bank's account agreement and your MCA agreement all affect what you can do. For advice about your own situation, talk to a business attorney.
First, confirm what actually happened
Most merchant cash advances collect a fixed daily or weekly payment by ACH, an automatic debit from your business bank account. Your contract sets the amount and the schedule. When two debits land on one day, or one debit is bigger than it should be, start by working out why. The cause decides what you do next.
| What you see | Possible cause | What to check |
|---|---|---|
| Two identical debits, same day, same funder | A processing error that ran the payment twice | Whether both debits carry the same trace or reference number on your statement |
| Two debits, one of them for an earlier day | A payment that was returned earlier, retried alongside today's | Whether a payment bounced in the last few days |
| One debit, larger than usual | A returned-payment fee, a catch-up of missed payments, or a payment change under your agreement | The fee schedule and payment terms in your contract |
| A debit from a name you don't recognize | Another funder, a new servicer, or a debit that has nothing to do with your advance | The originator name on the statement, and every agreement you've signed |
If your advance is repaid as a percentage of card sales instead of a fixed debit, a bigger collection on a busy day is how it's designed to work. What would be wrong is a percentage higher than the agreement states. Our guide to POS capital and split funding explains how to check that.
Check it against your contract
Open your agreement and find four things:
- The payment. The amount, and whether it's daily or weekly. Note which days count, for example business days only.
- Fees. Many agreements add a fee for a returned payment, and some allow the funder to collect missed payments later.
- Payment changes. Any clause that lets the payment change, such as after a missed payment or a default.
- Reconciliation. If your agreement has a reconciliation clause, the funder may adjust your payment based on your actual sales. That's a separate process, covered in how to ask for a lower MCA payment.
If the extra debit fits a clause, the question becomes whether the clause was applied correctly. If it doesn't fit anything in the contract, it's an error or an overcharge, and you have a clear case for a refund. Our guide to reading your MCA contract shows where these terms usually sit.
Document it the same day
Before you call anyone, gather the facts. For each debit you're questioning, write down:
- the date it posted and the amount
- the originator name exactly as it appears on your bank statement
- the trace or reference number, if your bank shows one
- what you expected to be debited that day, from your contract
Save a PDF of the statement page, not just a screenshot of your banking app. Keep notes of every call: who you spoke with, when and what they said.
| Date | Expected | Debited | Difference |
|---|---|---|---|
| Monday | $500 | $500 | $0 |
| Tuesday | $500 | $1,000 (two debits of $500) | $500 extra |
| Wednesday | $500 | $500 | $0 |
Example only, not an offer.
Contact the funder in writing
Call if you like, but always follow up by email to the funder's servicing or customer team. Keep it short and factual:
- your business name and agreement number
- the date, amount and trace number of each debit you're questioning
- what your contract says the payment should be
- what you're asking for: a refund to your account, or a credit against your balance, confirmed in writing
- a request for an updated payment ledger showing every payment received
If the extra debit left your account short, say so, and ask the funder to pause or reduce the next payment while the error is fixed. An error is easier to fix once it's documented. Get any refund, credit or pause confirmed in writing.
What your bank can do, and how fast you need to move
ACH debits run under the Nacha Operating Rules, the rules for the ACH network, plus your bank's own account agreement. Those rules treat business accounts and personal accounts very differently, and the business timeline is short.
| Business account | Personal (consumer) account, for comparison | |
|---|---|---|
| Returning a debit you didn't authorize | Your bank generally has about two banking days after the debit settles to return it through the ACH network | Generally up to 60 calendar days |
| After that window | A return through the network usually needs the funder's bank to agree. Otherwise it becomes a matter between you and the funder. | Longer protections apply |
| Federal consumer protections (Regulation E) | Generally don't apply | Apply |
Timeframes summarize the Nacha return rules as published in bank quick-reference guides. Your bank's process and deadlines may differ, so ask it directly.
So if a debit wasn't authorized, for example an exact duplicate or a debit from a company you never signed with, call your bank the same day you spot it. Ask whether it can return the debit, and what it needs from you. Have the date, amount, originator name and trace number ready. Your bank decides whether the debit qualifies.
A return gets money back. It doesn't settle anything else. If the funder believes the debit was allowed under your agreement, it can dispute that with you directly, so keep working the written request to the funder at the same time.
Can you stop the ACH without defaulting?
This is where owners get hurt. Returning one wrong debit is different from stopping all future debits.
- A stop payment asks your bank to block a specific debit. It doesn't cancel the authorization you gave the funder.
- Revoking the ACH authorization, or putting a block on all of a funder's debits, stops future payments entirely.
Many MCA agreements treat a blocked, stopped or revoked payment as a default. Depending on the agreement, a default can bring fees, a demand for the full remaining balance, or a lawsuit. Stopping the ACH also doesn't end what you owe under the agreement.
That's why the safer order is: document the error, ask the funder to fix it in writing, and use your bank's dispute process for the specific wrong debit. Don't stop or revoke the funder's authorization on your own. If you're thinking about it, talk to a business attorney who handles MCA agreements first.
If the extra debits have left you unable to make your regular payments, read Can't make your MCA payment? What to do first.
If it keeps happening
A single duplicate that's refunded quickly is an error. Repeated extra debits, slow refunds, or debits that don't match anything in your agreement are a pattern, and they're worth taking more seriously.
- Keep the same log for every debit, every day.
- Put each problem in writing to the funder, referring to your earlier emails.
- Talk to a business attorney about your options before taking any step that could count as a default.
Catch it early next time
Extra debits are easiest to fix in the first day or two, which on a business account is often all the time your bank has. A few habits help:
- Set up debit alerts. Most banks can alert you to every ACH debit, or to debits from a specific company.
- Check daily payments daily. A quick look each morning catches a double pull while it can still be returned.
- Know what each advance should take. The free Bylt Capital tracker shows every advance, from any funder, with its scheduled payment, a running balance estimate and a payoff date. When your funder sends a statement, type in its balance. If the funder's balance has dropped faster than your scheduled payments explain, extra money has come out, and you know to look at your bank statement.
The tracker is free, it never contacts your funders, and you don't have to apply for anything or pass a credit check to use it.
What to do next
- Compare today's debits with the payment in your contract.
- Save the bank statement and note the date, amount, originator name and trace number.
- Email the funder asking for a refund or credit and an updated ledger, in writing.
- If a debit wasn't authorized, call your bank the same day. Business-account return windows are short.
- Don't stop or revoke the ACH without talking to a business attorney, and add every advance to the free tracker so you know what each one should take.
Founder and Chief Executive Officer, Bylt Capital
Daniel Morgan is the Founder and Chief Executive Officer of Bylt Capital, a direct provider of merchant cash advances, lines of credit, and equipment financing for small and mid-sized businesses. He began his career in merchant cash advance origination, where he advised business owners on funding options before taking on a team leadership role. He then moved into syndication, co-investing in advances alongside established funders, and built that into direct funding of smaller transactions. He later raised institutional capital to found Bylt Capital.
Having worked across origination, syndication, and underwriting, Daniel brings a full-cycle view of business funding. He leads Bylt Capital's mission to give business owners clear, transparent information about their financing before they commit.