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 to 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.

Payout Failure Notification

A notification email will be sent out to the email that we have on file for each user alerting them to a potential problem with the most recent payout attempt.

This email will be brand specific and will contain a link to log into their dashboard to validate and update their banking information, it will also contain information on how to reach out to our support teams to get assistance with correcting any issues.

below is an example of the email to be sent:

Email Subject: Time Sensitive: Reverify Your Bank Account

Email Body:

Hi [Merchant Name],

During a routine audit, we noticed that the bank account currently on file for your account needs to be re-verified.

This can happen for a few reasons:

Periodic verification as required by AML laws tied to transaction volume