About ACH Rejections
This article provides information about how the system responds when ACH rejections occur.
ACH corrections and rejections are processed daily. An ACH rejection occurs when a transaction cannot be processed because of a problem. When notified by Paya that the donation was not processed, OSV marks the transaction as rejected, and updates the payment method as suspended in the system. The organization, not the donor, incurs a fee from the bank for each ACH rejection. The reason OSV suspends that payment method right away is so the organization does not accrue any more fees.
When a payment method is suspended, it triggers an email to the donor explaining that their payment method has been suspended. The donor is responsible for correcting the payment method with the organization before the donation will be able to be processed again. No associated gift payment or transaction will process again with that payment method until the donor corrects or changes the payment method.
Transaction failures occur due to a problem with the payment method or the bank's ability to process the request. Some of those issues are permanent, like a completely wrong account number, and some are temporary, like insufficient funds.
When a rejection occurs, because the money was not received, that amount is no longer included in Giving totals. Information is filtered out of most reports like Giving, Reconciliation, and Export reports, with the exception of the Online Transaction Analysis report, where you can choose to include rejected transactions.
If there is a discrepancy in your bank deposits versus your Reconciliation report, the best place to look for more information is the ACH Corrections and Rejections Report. The user can run the ACH Rejection and Correction report to view the ACH accounts that have been corrected/rejected during a specific time frame. This report shows any transactions that may have been removed from the batch either before or after it deposited.
Check this out for more information about ACH corrections.