What is a Collections Divert?

A Collections Divert occurs when your account is unable to cover the fees owed, such as daily or monthly processing fees, due to an ACH reject or insufficient funds. When this happens, your deposits are temporarily diverted (held) to recover the outstanding balance.

During a collections divert, you can usually continue to process transactions, but your deposits will not be released until all owed amounts are collected. This ensures your account remains in good standing and helps prevent service interruptions.

What happens if I don’t resolve the issue that caused the divert?

In such a case your account will remain diverted until the matter is addressed. However, if your account hasn’t processed any transactions for more than 60 days and carries an outstanding balance, it will be closed. Accounts with a high collections balance may be closed prior to the 60-day threshold.

To avoid a collections divert, make sure your bank account has sufficient funds to cover any scheduled debits and that your banking information is up to date.