How long to tell if there are sufficient funds in a tenant account when they make a payment?
Varies by issuing bank.
When a tenant makes an ACH payment it can take 1-2 business days for it to debit from their account. Funds need to be available at this time.
ProPay will hold funds for 3 days to allow the transaction to settle. Most banks will report insufficient funds within 2-3 business days which is after funds debit and before the are deposited into the attached deposit account.
Some banks may take longer to report insufficient funds resulting in failed payments.
How long can it take to find out about an ACH return?
As much as 60 Days
When a tenant makes a payment using a bank account (ACH), most banks report ACH Returns within 2-3 business days, which is before these funds are deposited into the associated deposit account. In some cases, some banks (e.g. certain credit unions and smaller banks) may take longer to report insufficient funds. As a worst case scenario, according to NACHA:
Regulation E provides that, “A consumer must report an unauthorized electronic fund transfer that appears on a periodic statement within 60 days of the financial institution’s transmittal of the statement to avoid liability for subsequent transfers."
Therefore, regardless of the payment processor, an ACH Return can occur up to 60 days after it is initiated. This is extremely rare, but it’s good to know the official window.
Why were funds withdrawn from my account?
To recoup funds as a result of a failed or disputed payment
Payments that fail after the 3-day hold may result clawback of funds transmitted to your account. ProPay will pull back the balance of funds that were deposited but failed to clear as well as a $1.50 return payment fee. This is most often due to a failed payment but could be the result of a dispute.