What is an ACH Reject?

An ACH Reject occurs when an electronic bank transfer (ACH payment) fails to go through. This typically happens when your payment processor tries to deposit funds into your bank account or to withdraw fees, and the transaction is rejected by your bank.

ACH (Automated Clearing House) transactions can fail for various reasons, including:

• insufficient funds or uncollected funds in the account 
• a closed or invalid account number     
• incorrect routing or bank account details
• a stop payment placed on the transaction by the account holder, or a  frozen bank account

To resolve an ACH Reject, first identify the reason for the rejection. Once you know the cause, take appropriate action:

• if the bank account is closed or incorrect, you should update your banking information with the correct details as soon as possible. You can change your bank account (DDA) details directly in your Paysafe Business Experience account.
• if the issue is insufficient funds, ensure there are adequate funds available for the transaction; this also applies when there is balance in the account, but the amount hasn’t been cleared or settled yet and is therefore unavailable for covering the debit.
• if the issue is due to a stop payment or a frozen account, contact your financial institution for any required corrective actions.

After resolving the issue, notify us so we can attempt the transaction again or advise on the next steps.

Prompt resolution helps avoid further fees and potential account interruptions.

To ensure you don’t experience issues with ACH Rejects, we suggest the following:

• keep sufficient funds in your account
• avoid placing stop payments on expected debits
• keep your DDA (bank account) information up to date
• notify us if you’re changing banks

Monthly fees are debited at the end of the month. If you don’t have sufficient balance, they may also cause an ACH reject. 

What happens to my daily or monthly fees during an ACH Reject?

Any uncollected daily or monthly fees, such as discount fees, statement fees, or PCI fees, will still be collected. These fees will be deducted from your next available deposit before the remaining funds are released to your account.

Are there fees associated with ACH Rejects?

Yes, fees are typically charged for ACH Rejects. These occur when a transaction fails due to issues like insufficient funds, closed accounts, or incorrect banking details.

The associated fee helps cover processing costs and may vary depending on your merchant agreement.