While Payload performs NACHA-compliant account verification prior to processing ACH payments, the sending bank ultimately has the authority to approve or reject the transaction within 2-3 business days. Account verification will catch the vast majority of issues prior to processing, but rejections post-processing remain technically possible.
For example, some banks (notably smaller community banks) do not permit outbound payments from savings account products. Although Payload can verify these accounts, internal bank policies like these are oftentimes not shared electronically and therefore the bank may reject the payment within the 2-3 business day window with reject code R20: Non-Transactional Account.
Other rejection reasons may include:
- Insufficient Funds: At the time of formal processing (roughly 7:30PM EST), the customer account fell below the required balance.
- Account Closed: Bank account is no longer open and active and this data hasn't been reflected in the shared data for account verification services.
- No Account / Unable to Locate Account: The bank cannot identify the submitted account.
- Invalid Account Number: The submitted account number is slightly off (ie. leading zeros weren't added) or there was a recent account number change or ownership change that hasn't been reflected in the shared data for account verification services.
- Customer Stopped the Payment: The customer contacted their bank and stopped the payment within the timeframe guidelines. For more information on this rejection reason, please read 'customer stopped payment'.
If a payment is rejected, the Payment Status will change to Rejected, the reason will be displayed, and users subscribed to Reject Payment Notifications will receive an email alert. The customer can resubmit their payment with corrected information or pay using a different method.
Please note that if expedited funding is in place and Payload deposits the payment prior to receiving a reject/return from the sending bank, Payload will process a Reversal of that deposit (since the payment never left the sending account).