This article explains what it means when an ACH payment fails, the most common reasons it happens, and what to do next to keep your SRM or HEBLOC in good standing.
What It Means When an ACH Payment Fails
An ACH payment failure means the transfer you initiated from your bank account did not complete through the ACH network. When this happens, the payment will not clear and will not be applied to your loan balance.
If your payment fails, you will be notified. You will need to correct the issue and submit a new payment.
Common Reasons ACH Payments Fail
- Insufficient funds: There was not enough available balance in your bank account when the transfer processed.
- Incorrect bank details: The bank account number and routing number did not match a valid account.
- Bank transfer restrictions: Your bank may have restrictions or additional requirements for ACH transfers.
What to Do Next
- Review the notification: Check any details provided about the failure.
- Confirm funds are available: Make sure your bank account has enough available balance.
- Verify your bank details: Confirm your routing number and account number are correct.
- Re-submit your payment: Initiate a new ACH payment from your bank account to the Peoples Reserve Real Estate Equity Fund.
Avoiding Late or Missed Payment Status
To reduce the risk of timing issues, submit your ACH payment at least 5 business days before the end of each month. Payments submitted too close to month-end may not clear before the due date.
When to Contact Support
Contact Peoples Reserve Support if:
- Your payment repeatedly fails after you confirm funds and bank details
- You believe your payment information is correct but the transfer still will not complete
- You are concerned your payment may not clear before month-end