Overview

Cut+Dry has transparent workflows for when chargebacks happen.

Find the answers to common questions below.

Chargeback FAQ

What is the credit card chargeback workflow?

1. Bank deduction: Cut+Dry's bank will deduct the chargeback amount from our account.
2. Distributor notification: Cut+Dry will notify you about the chargeback.
3. Customer contact: You will need to contact your customer and have them either:
   • Cancel the chargeback with the credit card company.
   • Provide evidence of goods delivered so that Cut+Dry can dispute the chargeback.
4. Dispute outcome: If the dispute is denied, Cut+Dry will deduct the chargeback amount from your next payout.

What is the ACH chargeback workflow?

1. You are notified of the failed payment.
   • ACH through FTNI: Because ACH transactions involve direct bank-to-bank transfers, your bank will notify you directly about any ACH return or chargeback.
   • ACH through SVB: Chargeback handling depends on when it occurs in relation to the payout:
     • Before payout: The chargeback amount will be excluded from the payout and Cut+Dry will inform you via email of the failed payment.
     • After payout: The chargeback amount will be deducted from your next payout and listed within your payout report.
2. You must contact your customer to recollect the payment.

What is the bank account verification process for ACH setup?

• ACH through FTNI: Cut+Dry will schedule an initial kickoff call with you, FTNI, the bank, and us, to discuss implementation details and timelines. The setup may take a few weeks because FTNI needs to establish a secure file transfer with your bank; the exact timeframe depends on your bank's processes and any unique requirements.
• ACH through SVB: Once the invoice sync is complete and you have connected your bank account within the Cut+Dry Distributor Portal, you can immediately activate ACH payments. There is no delay.

Does a chargeback or bounced ACH payment reopen an invoice?

1. When Cut+Dry receives a failed payment notification from the payment processor:
   • The payment will be marked with Failed status.
   • The invoice will remain in Processing status.
2. The invoice status will change with the next ERP sync (e.g., re-open), since your ERP is considered the source of truth for invoice status and balances.