Payments can sometimes fail or be disputed, and a $25 fee will be assessed to your merchant account when this happens. (Note: Payments that failed or were disputed before July 17, 2108 were assessed a $35 fee, this will not change.)
Read below to learn more about payment failures and disputes.
When bank payments fail there is a $25 fee assessed by our payment partner to your merchant account. When this happens, we automatically email both you and the parent informing you of the situation. We also automatically add $25 to the failed payment to help you recoup the $25 when it is successfully paid through Groundwork.
Here are the most common reasons bank payments fail and what to do.
No Account Found/Incorrect Account Number - the account number provided is incorrect. This could be due to a typo in the number entered or from entering in a non-account number. Parents can log in to their account to update their payment method and retry the payment.
Insufficient Funds (NSF) - the payment bounced due to insufficient funds in the payer's bank account. Parents can log in to their account to update their payment method and retry the payment.
There is no fee for card failures. Groundwork also automatically retries payments for some card failures, like insufficient funds.
Card Disputes (aka "chargebacks")
A card chargeback is a protection afforded to consumers through card networks and issuers and—as a merchant processor—these rules apply to you. When payers dispute a card payment, the original payment amount you received is pulled from your merchant account or bank account and returned to the payer. Additionally, there is a non-refundable $25 fee assessed by our payment partner. Chargebacks can be contested by providing evidence that you are entitled to the funds (e.g., the payer entered into a contractual agreement with you). If you would like to contest a card dispute, please contact us directly.
Bank (ACH) Disputes
Consumers are protected by law from unauthorized debits to their bank account and can dispute payments by contacting their bank within 60 days of the unauthorized payments. Like card disputes, bank disputes incur a $25 fee.