Similar to a bounced check, an electronic bank payment (via ACH) can also fail.
Bounced payments are a pain for everyone involved, but we are here to help!
Why would a payment bounce?
The most common reason for a payment failure is “Non-Sufficient Funds” (NSF), meaning the tenant did not have enough money in the bank to complete the transaction. In rare cases, a payment could also bounce if the tenant entered incorrect banking info, paid with a closed account or because they intentionally told their bank to stop payment.
So a payment bounced... Now what?
1. As soon as we are notified of a payment failure, we email both the tenant and the landlord informing them of what happened and why.
2. We encourage tenants to submit a new payment ASAP and to contact their bank to confirm that the payment won’t bounce again. We also let the tenant know that we are happy to jump on a conference call with their bank to help clear up the situation if they don't feel comfortable contacting the bank themselves.
3. If Place has already moved the funds in question into the landlord’s bank account, we may have to initiate a reversal, which means that the funds in question will be debited from the landlord’s bank account. However, if the tenant can make a new payment for the full amount with a Debit/Credit Card* by the end of that business day we will allow the original payment to stand and will not initiate a reversal to avoid further disruption. If we have not confirmed the new payment by the end of the first business day, a reversal of the original transaction will be initiated. This is a last case scenario and if it does come to this, we will send the money back as soon as the tenant pays what is due.
Does Place charge a bounced payment fee?
Nope. There are no additional fees for a bounced payment. We only charge tenants our standard service fees for any new payments made to cover outstanding debts.
*We request card payment instead of bank payment (via ACH) in when replacing funds because card payments are approved instantly whereas ACH payments may take several days to process.