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How can I resolve and prevent returned or declined payment issues in PayHOA?

Natalie Jordan avatar
Written by Natalie Jordan
Updated this week

How to Resolve and Prevent Returned or Declined Payment Issues in PayHOA

Returned or declined payments are common payment problems that can arise for various reasons, ranging from insufficient funds to outdated banking information. This article provides an overview of common causes for returned or declined payments in PayHOA and outlines actionable steps for resolution and prevention.

Common Causes of Returned or Declined Payments

Payments may be declined or returned for the following reasons:

  • Insufficient Funds: If the payer's account lacks adequate funds, the bank will decline the payment and return a failure code indicating insufficient funds.

  • Payment Method Errors: Incorrect or outdated banking details (e.g., expired credit cards) can cause payments to fail.

  • Bank or Processor Blocks: After multiple failed payment attempts, PayHOA or third-party services like Stripe may block the payment method to prevent fraudulent activity.

  • Bank-Specific Reasons: Payments can be declined by the payer's bank for reasons that may not be explicitly communicated but might require clarification directly from the bank.

Steps to Resolve Payment Issues

1. Identify the Cause of the Problem

  • Check with the affected homeowner or your financial institution to determine why the payment was declined or returned.

  • Refer to failure codes or notifications provided by PayHOA or your bank for additional details.

2. Update or Verify Payment Information

  • If the issue is due to an expired or incorrect payment method (e.g., expired credit card on file), update the payment details. For updates to subscription billing, go to organization settings in PayHOA and select 'Billing.'

  • Homeowners can update banking details by providing a voided check or a recent bank statement to demonstrate account activity and validity. Submit this information to PayHOA for further action.

3. Follow PayHOA-Specific Procedures

PayHOA provides tools to handle returned payments effectively:

  • Unlinking the Payment: If the returned payment is linked to a transaction, unlink it first.

  • Adjusting the Transaction: Modify the transaction's total amount to reflect the returned amount. If the transaction has no other payments linked to it, you may delete the entire transaction.

  • Deleting the Payment Record: This ensures your records are accurate and up to date.

4. Resolve Blocks or Restrictions

If a payment method has been blocked by PayHOA or a third-party processor like Stripe due to suspected fraud or repeated declines:

  • Submit a picture of a voided check to request unblocking. This will allow a support ticket to be filed with Stripe to resolve the issue.

5. Consider Returned Payment Fees

  • PayHOA does not charge the association for returned payments due to insufficient funds. However, if a payment has already settled and is later returned or disputed, fees may apply.

  • It is up to the association to determine whether to charge any fees to the homeowner for the returned payment.

Tips to Prevent Future Payment Issues

  • Ensure that payment methods on file are always up-to-date, verifying details like expiration dates and active status.

  • Communicate with homeowners about maintaining sufficient funds in accounts used for payments.

  • Monitor notifications from PayHOA about payment failures or issues and address them promptly.

Frequently Asked Questions (FAQs)

Why did I receive a returned payment notification for a payment I didn’t make?

Returned payment notifications are sent to all account administrators in PayHOA. If no payment was made, the issue could be related to subscription billing. Update the payment method under 'Billing' in organization settings to resolve this.

What should I do if my payment to PayHOA is returned?

If your payment was declined by your bank, contact your banking institution to clarify the reason for the return and update your bank information as needed. By following the steps and tips outlined in this guide, you can efficiently resolve and minimize returned or declined payment issues in PayHOA.

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