Questions
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When a tenant makes an ACH payment, the funds are typically withdrawn from their bank account on the same day if the payment is submitted before 2:00 PM EST. If the payment is submitted after 2:00 PM EST, the withdrawal will occur the following morning. It's important that tenants have sufficient funds available at the time of payment.
Once the payment is initiated, Stripe holds the funds for 2–3 business days to allow the transaction to settle. During this time, most banks will notify Stripe if there are insufficient funds (NSF) in the tenant’s account.
If the bank reports an NSF, the payment will fail, even though the funds may have initially appeared to be withdrawn. This usually happens before the payment is deposited into the landlord’s account.
⚠️ Note: Some banks may take longer than 2–3 business days to report insufficient funds. In these cases, a payment may fail after it was expected to succeed.
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Why were funds withdrawn from my account?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 2-3 business days may result in clawback of funds transmitted to your account. Stripe will pull back the balance of funds that were deposited but failed to clear.
Each failed payment will result in a $1.50 fee + $1 for the ACH transaction. This is most often due to a failed payment, but could be the result of a dispute.