Unauthorized and Incorrect Electronic Funds Transfer

Merchants Bank employs many different security enhancements to protect our customers from unauthorized (fraudulent) or incorrect transactions via online banking, debit card transactions, ACH transactions and even check transactions.  The best way for you to protect yourself is to be very proactive and vigilant about checking your account(s) to quickly identify unauthorized or incorrect transactions.  Whenever you see a transaction that you don’t recognize on your statement, please contact your local branch or call the Merchants Bank Customer Call Center at 800-322-5222. 

You must inform Merchants Bank of an unauthorized or incorrect transaction on your account within 60 days of receiving the statement in which the transaction is listed. We will begin processing the claim as soon as we are notified. You may notify us by phone, fax, in person, or by secure form submission within Online Banking. The information below deals specifically with debit card and ACH transactions.

There are three basic types of transactions that you may question on your statement: 

  1. One is an unauthorized electronic funds transfer transaction, which means that someone else used your card without your authority and you received no benefit for that transaction.  Example:  You notice a gas station charge on your account for a state you have never been to.
  2. Another option is a transaction you may want to dispute even though it is not fraudulent.  This transaction is called an incorrect electronic funds transfer. Example:  You used your debit card to reserve a hotel room, but cancelled the hotel and got charged anyway.
  3. The final transaction is one that does not involve a debit card but it is run through the Automated Clearing House (ACH) using your account information. Example: You have cancelled your gym membership but your account was charged again a month later.  
Unauthorized Electronic Funds Transfer (Fraudulent) Transactions

Remember that an unauthorized or fraudulent transaction only occurs when you never authorized anyone to use your card and received no benefit from the transaction.  Your will be required to sign or securely submit the Unauthorized Electronic Funds Transfer Transaction Form to certify to that fact.

In order to process your unauthorized electronic funds transfer transaction claim, we need the Unauthorized Electronic Funds Transfer Transaction Form filled out completely and accurately.  Each and every piece of information is important.  We will begin processing your claim as soon as you notify us. You may notify us by phone, fax, in person, or by secure form submission within online banking.  We will issue provisional credit within 10 days for an unauthorized or fraudulent ATM or debit card transaction.  We encourage you to review any overdrafts caused by the disputed transaction(s) with your branch.

Incorrect Electronic Funds Transfer Transaction

Remember that an incorrect transaction is when you purchased a good or service and for some reason (cancellation, unhappy with merchandise, double charged) you don’t feel you should pay.  For every disputed transaction, you will have to show that you approached the merchant involved to try and resolve it.  Please document all attempts of your own to resolve the issue. If you cannot resolve it that way, we are happy to try and resolve it for you. 

In order to process the incorrect transaction claim, we need the Incorrect Electronic Funds Transfer Transaction Form filled out completely and accurately as well as any documentation regarding your attempt to resolve the dispute with the merchant (for example: receipts, communications to/from the merchant, etc). 

It is important to note that when processing an incorrect transaction dispute that Merchants Bank is submitting a dispute between you and the merchant to MasterCard on your behalf.  MasterCard makes the final determination regarding whether or not we can get the money back from the merchant.  If we are able to get the money from the merchant, you will be reimbursed.  However, if we cannot get the money back, you will not be reimbursed.

Merchants Bank has ten (10) business days to process the claim and give you provisional credit however we may take up to 90 days to fully resolve the dispute. If the claim is denied we will debit your account for the entire amount.

Unauthorized Automated Clearing House (ACH) Transactions

You will be required to sign or securely submit the Unauthorized ACH Transaction Form to certify that you either did not authorize the transaction or that the transaction was processed in a way that contradicted the original authorization you agreed to.

In order to process the claim, we need the Unauthorized ACH Transaction Form filled out completely and accurately as well as any documentation regarding your attempt to resolve the dispute with the merchant (for example: receipts, communications to/from the merchant, etc).

Merchants Bank has ten (10) business days to process the claim however we may take up to 60 days to complete the investigation. We will provisionally credit your account for the amount of the claim within 10 days. If the claim is determined to be invalid we will debit your account for the entire amount of the provisional.

We will notify you of the results in writing once the investigation is complete.