Debit Return Reasons

A direct debit return occurs when a donor's bank rejects a online check, also known as a direct debit. This can occur if the account holder states the debit was made in error or if the account information does not match the bank's records.

Here are some of the common direct debit return reasons when processing direct debit payments with Blackbaud Merchant Services, and recommended steps to resolve:

Direct debit return reasons

Reason	Action
The customer's account has insufficient funds to cover this payment.	Contact the account holder to confirm they have funds to cover the payment before resubmitting the transaction.
The customer's bank account could not be located.	The account was not found with the information provided. Confirm you have the correct routing and account number for this transaction with the account holder.
The customer's bank account has been closed.	Obtain new bank account information from the account holder.
The account number specified does not have the correct number structure.	Confirm the account number being used does not include any spaces, dashes, or non-numerical characters. The account number needs to be entered exactly as it appears on a check or bank statement, which may include leading zeros.
The customer's bank account is frozen.	Confirm the account freeze has been lifted prior to resubmitting the transaction.
The customer has notified their bank that this payment was unauthorized.	The account holder has not authorized this payment. If this was done in error, the account holder should reach out to their bank to give approval before the payment is resubmitted.
The customer's bank account has restrictions on either the type or number of transfers allowed. This normally indicates that the bank account is a savings or other non-checking account.	Contact the account holder to gather information for a different bank account or to have them clear up the issue with their bank before re-attempting.
Unable to process because the bank account failed or the mandate is no longer active. Contact the account holder to try another form of payment.	Obtain new bank account information from the account holder.

Warning: A direct debit return isn't sent to your CRM automatically. You may choose to remedy the direct debit return by changing the original transaction to $0 in the Blackbaud solution from where the transaction originated.

Tip: To be notified of direct debit returns as they occur, subscribe to notifications. For more information, see Notifications.