How Do Banks Investigate Disputes? A
Merchant’s Guide to the Bank Investigation
Process
When you run a business, it’s important to be aware of the different ways that
banks can investigate disputes. This is because the bank investigation
process can be complicated and time-consuming, and you need to be
prepared for it.
The first thing you need to know is that there are two types of bank
investigations: internal and external. Internal investigations are conducted by
the bank itself, while external investigations are conducted by a government
agency or another third party.
In most cases, banks will conduct an internal investigation first. This is
because it’s less expensive and time-consuming than an external
investigation. However, if the bank is unable to resolve the dispute, then it may
refer the case to an external investigator.
When a bank conducts an internal investigation, the first thing it will do is try
to contact the customer who made the complaint. This is because the bank
needs to get more information about the dispute.
After speaking with the customer, the next step is to gather all of the relevant
documentation. This includes bank statements, invoices, and any other
documentation that will help to prove or disprove the dispute.
Once all of the documentation has been gathered, the next step is to interview
all of the parties involved in the dispute. This includes employees, vendors,
and anyone else who may have information about the case.
After all of the interviews have been conducted, the next step is to make a
decision. The bank will either find in favor of the customer or the merchant. If
the bank finds in favor of the customer, then the merchant will be required to
refund the customer’s money. If the bank finds in favor of the merchant, then
no action will be taken.
It’s important to note that the bank investigation process can be lengthy and
complicated. Therefore, it’s important to be prepared for it. This means having
all of the relevant documentation and being ready to cooperate with the bank’s
investigation.