What to do if my ACH bank account is declined as a payment method
Our billing system is capable of processing credit cards, debit cards and electronic checks (ACH). These payment methods have different rules set by the banks and ACH carries the tightest restrictions. If an ACH bank account is flagged as unusable it can be difficult to reactivate it, and all payment attempts will be automatically declined.
There are a number of reasons a bank account may be flagged by the payment processor as unusable, like suspected fraud or a freeze, but often the cause is a disputed transaction.
Credit card and ACH transactions can be disputed, but they are handled differently. While credit card disputes generally allows for the space owner to submit evidence in support of the charge before a decision is made, ACH disputes are automatically decided in the favor of the member.
Once an ACH transaction made through Proximity has been disputed, our payment processor, (Stripe) flags that bank account as unusable with Proximity. Once that flag is set, all ACH transactions made from Proximity to the bank account in question will immediately fail with the assumption that this customer does not want their bank account to be used with Proximity.
In order to remove the flag and allow Proximity to process this bank account again, we must present evidence that the customer wishes to allow Proximity to process transactions on this account again. To present evidence, customers may present either of:
- a voided check from the account in question
- a bank statement from the account in question (line items like transactions and balances may be redacted)
Until one of these documents is submitted, from Proximity to our processor, ACH transactions on the affected account will continue to fail.
How to submit proof of authorization
Once you have received a voided check or bank statement from the customer, scan it if necessary, and upload it as a secure document to their account (Manage Members > Member List > [Member Name] > Documents). Once that is done, reach out to support. We will submit this evidence to our payment processor and we will contact you with the resolution.
Last update Jun 15, 2022 at 11:27am