If a payment fails, LotusPay informs the merchant and the customer of the reason. Most failure types can be easily rectified.
When a payment fails, LotusPay informs you and the customer by email. If you have integrated with LotusPay's API, we can also inform you via webhook.
Some payments can be rejected by LotusPay's bank, even before they are submitted to the NACH system. This would be for technical reasons, such as the mandate's frequency not permitting the transaction in the same period as the previous transaction. We mark these payments as cancelled.
If a payment fails, it's usually because of lack of sufficient funds in the customer's bank account. However, there are a whole range of reasons why a payment can fail. We mark these payments as failed.
Click here to see a full list of NACH Debit rejection and return error codes.
Reject codes are for transactions that are rejected by the NACH system at the outset, before they are even sent to the destination bank. These are usually technical reasons, such as the mandate already being in a cancelled state.
Return codes are for transactions that reached the destination bank and were returned for the reason specified by that bank. These are usually for punitive reasons, such as balance being insufficient, or account not in good standing.
When a payment fails for the 'Balance Insufficient' reason and some other reasons related to temporary issues, you can retry by creating a new payment. Merchants receiving direct credit in Pro Plan can optionally specify the product type as `RPN` to indicate representation.
If the failed payment leads to a default by the customer in their agreement with you, you should handle this with the customer and authorities directly. LotusPay's role is purely to process the payment.
Extended - Some payments may be 'Bank extended' i.e. the customer's bank is taking an extra one or two working days to process the payment. The payment will then move to its final status.
For merchants in the Pro Plan who are receiving direct credit, all of the above also applies to ACH Debit transactions.