Late failures
Late failures occur when a paying customer's bank fails to inform us that a payment could not be collected and so the payment gets marked as confirmed, but without the funds having been received.
The customer’s bank will later send us a delayed report (usually within 1 additional business day), informing us that an unsuccessful payment was not included in the initial report. As this new report is processed, the payment is updated to reflect the correct ‘failed’ status.
Providing the payment is marked as failed before the payout, the payment will show as a credit and debit in the same payout; the debit reflects the settlement against the credit for that payment. In the payment history for this payment, you will see a Paid out and Late failure settled event with the payout ID listed under each event.
If, however, we receive the delayed report after the payout has been processed, a negative balance will appear on your account for the amount of the payment and the funds will be settled against your next payout.
A late failure event will be shown as a debit in the report of the payout the payment was settled against.
Eurozone late failures
Please note : Payments collected from clients in the Eurozone (via the SEPA bank debit scheme) are more frequently reported as failures several days after the charge date. As such, we recommend allowing 7 business days before processing a refund of the collected payment to the client.