Summary

This is an internal processes for the PayFac team to enable payouts on accounts that have had them paused for any of the reasons listed in the reasons section. The processes listed here will catch the majority of reasons payouts will be paused and how to verify why they have been paused and what needs to happen to enable the payouts again.

Reasons Payouts May Become Paused

Below are some reasons that the payouts on an account may become paused:

• Requested by Merchant to update payout bank account. This is subject to account validation and can take 24 - 48 hours before validation is completed and payouts are enabled.
• Payout fails to deposit into merchants account. This can be due to routing number, or account number mismatch, or the receiving bank refusing ACH transfer. All funds are held and paid out once issue has been resolved and payouts are enabled.
  • Action: Validate the bank information entered is correct, if all information is correct have the merchant validate that the banking institution they are using can accept the ACH Electronic payment transfer.
• Risk/Fraud paused payouts. Something in the account setup or payments received has triggered a high risk flag and more investigation needs to be preformed to validate the business or a payment received to be able re-enable payouts.
  • Action: Check with Risk by adding the request for information to the Slack channel payfac-support, or by opening a PayFac ticket.
• Negative balance greater than a week or over $500. Payout is automatically paused by the system until the negative balance has been resolved. Typically is recovered through payments received, but can also be subject to ACH withdrawal.
  • Action: Inform the merchant that their account has a negative balance on it. They should have already been receiving emails with the information. An account can go into the negative by the merchants customers disputing charges, receiving chargebacks, or providing a large refund.
• New Account setup. With a normal setup the payouts are automatically enabled when the account is approved and activated. There are times when there was an issue when adding the bank account where the payout doesn’t get enabled by the automated processes.
  • Action: Validate that all information is showing as completed on the application, if all information has been completed, open a PayFac ticket to have the PayFac support team validate in Adyen that all information is completed and validated, and they will enable the payments if everything is completed and validated.

Validation Process to Enable Payouts

The process to validate the issue and enable the payouts is as follows:

New Account Validation and Enable Payouts Process

The account will need to be validated that all information has been received and the application has been completed and an MID number assigned to the new account.

• Validate that the payouts flag is showing as pending:

  

• If the account is showing payouts as pending validate that the bank account is showing as verified and not showing as pending:

  

  

• If the status of the bank account is showing as verified and the payouts is still showing as pending, a user that has the Support Specialist role assigned to their user ID has the permission needed to enable the payouts and set the sweep schedule. The PayFac support team has the permissions to enable the payouts, please open a PayFac ticket to request a PayFac support team member to enable the payouts on the account. More information on enabling the payout can be found here.

• If the bank status is still showing as pending, then there is an issue with the bank account or the documentation that was uploaded that is not allowing Adyen to approve the information for the merchants bank account. There will be some information in the Setup Page for this account along with on the profile page explaining the issue and what needs to be done to correct the bank information. If it is unclear or you need some assistance with deleting uploaded documents that do not meet the needs of validation, please open a PayFac ticket to engage the support team to look into the issue and assist with resolving the issue and enabling the payouts.

Active Enabled Account Validation and Enable Payouts Process

• Has the payouts been changed to Pending on an active account that has current transactions and has had successful payouts in the past?
  • Yes: Check the payouts screen to see if there are any payouts that failed or were rejected. Also check to make sure that there isn’t a negative balance, this can be seen on the payouts page and on the profile page.
  • No: See section above for a new account validation.