Overview
Failed eCheck (ACH) payments can incur fees and occur for various reasons, including incorrect account information. This guide explains the fees associated with failed eChecks, the reasons for payment failures, and how to resolve such errors for successful reprocessing. Additionally, it will cover fee recovery, billing processes, and frequently asked questions to better manage such scenarios.
Fees for Failed eCheck Transactions
Return Fee: - A failed eCheck transaction incurs a $10 return fee for each failed attempt. This fee applies when the bank declines the transaction. Failure reasons such as insufficient funds or incorrect account information will be common returns.
Processing Fee: - The standard 1% processing fee is charged for each eCheck transaction attempt. This means that even if an eCheck fails, the processing fee is still applied.
Common Reasons for Failed eCheck Transactions
A common error is the merchant_trans_daily_amount_exceeded error. This occurs when the cumulative eCheck transaction amount for the day exceeds the merchant's daily processing limit. Merchants can resolve this by submitting a limit-increase request, by contacting our support team.
A failed eCheck with an error message such as "No Account/Unable to Locate Account" often indicates issues with the bank account information provided. Common causes include: Additionally, this error is often associated with the specific error code ach_account_not_found, which indicates that the bank account information entered by the payer is incorrect or cannot be located by their bank. Common causes include:
Incorrect routing or account number entered by the client (e.g., transposed digits or extra spaces).
The account is closed or does not exist.
Details entered do not match what’s on file with the bank.- The account is flagged by the bank due to unusual activity or suspected fraud.
An asynchronous error occurs during the bank's end-to-end processing of the transaction.
Troubleshooting Steps for Payment Issues
If a payer encounters an error while attempting an eCheck payment, they can try the following steps:
Clear their browser cache and cookies.
Attempt the payment using a different browser.
Contact support team to confirm failure reason if one of the both occurred
Frequently Asked Questions (FAQs)
Who charges the NSF fee on failed transactions?
The NSF fee is almost always imposed by the client’s bank. LawPay has no role in charging NSF fees unless stated otherwise in billing statements.
What fees can a merchant expect if a payment fails?
For eChecks/ACH, merchants will see a $10 reject fee.