How to handle ACH payment failures

ACH payments can fail after being initiated.

Unlike card declines, which happen instantly, ACH failures may not be visible until 1 to 4 business days after the guest authorised the payment.

A failed ACH payment is not the same as a dispute or chargeback. 

If a guest's bank returns a payment after it has already settled, see How to handle an ACH Return.

ACH Payments are only available for the innRoad Payments gateway. Contact support@innroad.com to learn more.

This guide explains what causes ACH payments to fail, how you will be notified, and what steps to take.

• Why ACH payments fail
• How you are notified
• Steps to take

Why ACH payments fail

An ACH payment can fail at any point during the clearing process. 

Common reasons include:

• Insufficient funds in the guest's bank account at the time of settlement.
• Account closed or unavailable before the payment cleared.
• Debits not authorized on the guest's account.
  
  Some bank accounts have ACH debits blocked at the account level.
• Payment stopped by the guest or their bank before settlement.
• Payment blocked by Stripe due to a high risk assessment on the transaction.

A failed ACH payment means the funds were never received by your property, even if the payment briefly showed a Pending status on the folio.

How you are notified

When an ACH payment fails, innRoad will:

• Update the transaction status in the Payments Dashboard to Failed.
• Update the folio line item on the reservation to reflect the failed payment.
• If the payment was related to a deposit policy, a Payment Link will be created automatically.

Check the Payments Dashboard regularly for any transactions showing a Failed status, particularly for reservations with check-in dates in the next 7 days.

Steps to take

When you identify a failed ACH payment, take the following steps.

1. Open the reservation in innRoad and confirm the current balance owed. The folio should reflect that the payment did not apply.
2. Contact the guest promptly. Let them know the payment was unsuccessful and that an outstanding balance remains on their reservation.
3. Collect a new payment.You can re-collect the balance via:
   • A new Payment Link sent to the guest.