If your tenant’s issuing bank fails to process their payment, the amount related to that payment will be debited from your bank account.
If another rent payment comes in before the failure is debited from your account, the difference between the failure and the latter rent payment will either -
- Be paid out, if the latter rent payment is greater than the amount failed
- Be debited, if the latter rent payment is less than the amount failed
You and your tenant will be notified of the payment failure and invoice status will change from ‘Paid’ to ‘Due’. The payment history on the invoice will show attempts including failed and successful attempts.
Common reasons for payment failures include:
- Insufficient funds
- Incorrect account information
- Incorrect billing address
- Account restrictions based on account type or transfer limitations