What If My MCA Funder Is Debiting More Than We Agreed?
Compare the debits with your contract, then contact the funder in writing and ask them to explain and correct it. If the overcharge continues, talk to your bank about the ACH authorization and consider a business attorney.
Why would a funder debit more than agreed?
- A reconciliation adjustment in the funder's favor after sales rose on a split arrangement.
- Returned payment fees or a catch up of missed payments.
- A default rate kicking in after a missed payment.
- A simple processing error, like a doubled debit.
- A debit that isn't from your funder at all.
What should you check in the contract first?
Read the payment section and the fee schedule. Some contracts allow higher collections after a default or add fees for returned payments. If the extra debit fits a clause in the contract, the conversation is about whether the clause was applied correctly. If it doesn't fit anything, it's an error or an overcharge.
How do you contact the funder about it?
Email the servicing team with the dates and amounts of the debits you're questioning, what you expected and what you want them to do. Ask for a written explanation and a ledger. Most errors get fixed quickly once they're documented.
What can your bank do?
ACH debits are governed by the authorization you gave and the rules for the ACH network. If a debit exceeds what you authorized, your bank can help you dispute it. Business accounts often have shorter dispute windows than personal accounts, so act promptly. Revoking the authorization entirely is a big step that can breach your contract, so talk to an attorney before doing it.
Which records should you keep?
Save every statement, email and call note. If the dispute escalates, a clear record makes all the difference.
Is this legal advice?
This is general information, not legal advice. For a real dispute, talk to a business attorney who can read your specific contract.
How do overpayments happen on a split?
With a split arrangement, the processor takes a percentage of card sales. If your sales jumped, the funder's share grows too, which is the design, not an overcharge. What would be wrong is a percentage higher than the contract states. Compare the processor's reports with your contract's specified percentage to check.
What if you see a double debit?
Processing errors occasionally cause a debit to run twice. It's usually a quick fix. Call the funder with the dates and amounts, and ask for the refund and confirmation in writing. If the funder is slow, your bank can help.
How do you protect cash flow while it's sorted?
If an overcharge leaves the account short, tell the funder how it affects your other bills. Most funders pause or reduce a payment while they sort out an error rather than risk a bounced debit.
How can Afterfirst help with this?
If your advance came through us and the debits don't match, call 877-FUND-654 and send your contract and statements. We'll help you understand what the contract allows and work with you to get it corrected.
What else do owners ask about this?
- Can a funder change my MCA terms after I sign?
- How do I check the balance on my merchant cash advance?
- What happens when I finish paying off my MCA?
More short answers on this topic are on the after you're funded FAQ, and the MCA early payoff calculator runs the numbers for your own file.
Have a question we didn't answer?
Ask us on the call. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.