Failed Payments

How to Resolve Payment Failures Due to Blocked Bank Accounts

What is a Blocked Account? 

A blocked bank account is an account that has restrictions or holds placed on it by the bank. These restrictions can prevent transactions, including ACH payments, from being processed. The bank imposes these blocks for various reasons, which may include security concerns, previously disputed or failed ACH payments, insufficient permissions, temporary holds, or compliance requirements. 

Why Does a Blocked Account Cause Payment Failure? 

When a payment is initiated, the payment processor (Stripe) communicates with the bank to verify and process the transaction. If the account is blocked, the bank rejects the transaction, causing the payment to fail. This failure is outside the control of the payment processor and is determined solely by the bank. In order to stay compliant with NACHA regulations, Stripe is unable to retry debits to any blocked bank accounts without further review and confirmation that the customer has authorized the payment.

General Steps for Resolving Blocked Payments

1. Identify the Decline Code: Please reach out to membership@xyplanningnetwork.com to get the decline code associated with your failed payment (i.e. bank_account_frozen; debit_not_authorized; bank_account_restricted; bank_account_closed).
2. Request Documentation: Depending on the decline code, follow the steps below to request the relevant documentation from your bank (bank letter, bank statement, etc.).
3. Upload Documents for Review: Once the required documents are obtained, upload them through XYPN through our Secure Upload Link.
4. XYPN Confirms with Stripe: XYPN will submit your documents to Stripe, and Stripe will review the documentation to confirm whether the block can be lifted. If additional steps are needed, you will be informed.
5. Block Lifted: if the documentation is accepted by Stripe, your block will be lifted and payments will resume as normal!

Steps to Resolve Specific Decline Codes

Bank Account Frozen

• Description: Bank accounts that are blocked with a decline code of BANK_ACCOUNT_FROZEN. If the failed payment is due to a frozen account, Stripe requires additional verification to ensure that the account is capable of making future ACH payments.
• Action Required: The member must provide ONE of the following and submit to XYPN through our Secure Upload Link:
  • A letter from your bank confirming that the account can support debit transactions to XYPN. OR
  • A bank statement showing recent debit activity.

Debit Not Authorized

• Description: Bank accounts that are blocked with a decline code of DEBIT_NOT_AUTHORIZED. If the failed payment is due to an unauthorized debit, it indicates that the bank has not authorized the ACH transaction from Stripe. This may happen if the bank has blocked ACH transactions from certain entities (i.e. XYPN).
• Action Required: The member must complete ALL THREE of the following items and submit their letter to XYPN through our Secure Upload Link:
  • Request that their bank whitelist the Stripe ACH ID's to allow future debits from Stripe
  • Ensure Stripe ACH ID's have been added to the bank’s allowlist
    • ACH ID #1: 1800948598 - Stripe Payments Company
    • ACH ID #2: 4270465600 - Stripe Payments Company
  • Request and submit a letter from the bank confirming:
    • Authorization restrictions on the account have been lifted
    • Stripe's ACH ID's have been added to the bank's whitelist and allowlist
    • The account details, including:
      • Account Number
      • Routing Number
      • Name on the Account

Bank Account Restricted

• Description: Bank accounts that are blocked with a decline code of BANK_ACCOUNT_RESTRICTED. If the failed payment is due to a restricted account, the bank has placed a restriction on the account that prevents ACH payments from being processed.
• Action Required: The member must provide ONE of the following and submit to XYPN through our Secure Upload Link:
  • A letter from your bank confirming that the account can support debit transactions to XYPN. OR
  • A bank statement showing recent debit activity.

Bank Account Closed

• Description: Bank accounts that are blockers with a declined of BANK_ACCOUNT_CLOSED. If the failed payment is due to a bank account closed Stripe requires proof the account is now open. 
• Action Required: The member must provide ONE of the following and submit to XYPN through our Secure Upload Link:
  • A recent screenshot of your online bank portal showing the full routing and account number. OR
  • A letter from the bank noting the account is still active.

Conclusion

If your payment has failed due to a blocked bank account, it's important to address this as soon as possible to avoid any disruption to your XYPN membership. Please follow the "General Steps for Resolving Blocked Payments" above and reach out to membership@xyplanningnetwork.com with any questions or concerns. Taking these steps promptly will help ensure your future payments can be processed smoothly!