Debit Return Reasons

A direct debit return occurs when:

• An account holder disputes a previously approved direct debit transaction.

• The bank can’t authorize a direct debit because of insufficient funds or a closed account.

Here are common reasons for direct debit returns when processing payments with Blackbaud Merchant Services, along with recommended steps to resolve them.

Direct debit return reasons

Reason	Recommended 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Unable to process because the bank account failed or the mandate is no longer active.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.

Note: A direct debit return isn't sent to your Blackbaud solution automatically. To ensure correct records, adjust the payment to $0 in your solution.

Tip: To receive email notifications when a direct debit is returned or declined, subscribe to notifications in the web portal. For more information, see Manage Notification Settings.