Payment Pad - Direct Banking Error Handling

As per the setup instructions, the Tenant sets up their direct banking instructions directly with their financial institution. Payment Pad processes the payments and updates the ledger once funds have been received and matched with the tenants account details.

 

In the following scenarios payment cannot be applied and Actions need to be taken by Property Management Company and Tenants.

 

1) Building Merchant Bank Account has been disabled-  In this case the payment cannot be processed and the payment cannot be applied or transferred. The tenant needs to contact their financial institution and advise them they made a payment to the wrong account in error and request a refund. This process can take 5-20 business days depending on the financial institution. Payment Pad Charges a $25 processing fee for these cases to the account in question to the tenant.

 

2) Tenant Made Payment to wrong account for active merchant - This case sometimes happens when a building is sold but managed internally with the same PMC. In this case the payment has been applied and funds have been sent to PMC. Tenant needs to contact PMC and ask that they allocate the funds to the correct account number. Payment Pad cannot control funds that have settled. 

 

3) Tenant made a payment with an invalid account number - In this case the payment cannot be processed and the payment cannot be applied or transferred. The tenant needs to contact their financial institution and advise them they made a payment to the wrong account in error and request a refund. This process can take 5-20 business days depending on the financial institution. Payment Pad Charges a $25 processing fee for these cases to the account in question to the tenant. 

 

To avoid the steps above it is recommended that PMC follows the Building Transfer/Sold procedures and communicates correctly with tenants to avoid confusion from happening in the first place. 

 

FAQs -

Q: Why does it take this long? 

A: Direct Banking uses an antiquated banking system. The process is handled manually via Fax and is triggered from the financial institution to avoid fraud.

 

Q: Where is the money?

A: The money is with Payment Pad until it gets the correct authorization request from the financial institution requesting a refund

 

Q: How do I know if the funds did not apply and are sitting in Limbo?

A: If after 2-5 business days your ledger has not been automatically updated the chances are high the payments did not apply and the tenant used an old/wrong account number.

 

Q: Can ANY tenant ask for a refund?

A: If the funds have been settled already no refund can be requested. Refunds need to be discussed with the PMC directly.

 

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