In almost all cases, payments returned to Velo by the bank are due to issues with the account number provided for a Payee’s preferred Payment Method.
When a payment is returned, the following things happen behind the scenes:
- Velo receives a notice from our bank partner
- Funds are returned to the Payor balance
- Payee's Payment Method is put into an non-payable state
- Payment status is updated to Returned
- An email is triggered to the Payee notifying them of the return and prompts them to edit their Payment Method
After the Payee updates their Payment Method, Payors will be able to instruct a new payment to the Payee.
In instances when payments are returned, foreign exchange (FX) charges could apply to the payment and the return of the payment. For each return, a reason code will be applied and displayed within the Payee’s payment history.