Below are a few common reasons why a repayment might fail.
Please note that users are notified by email and within the app about the current status of their repayment, including whether it was successful, failed, or is being retried.
Borrower-related issues:
The debit card used for repayment is invalid or expired.
Insufficient funds were available in your account at the time of withdrawal.
The card was flagged for unusual activity by your bank.
The linked bank or debit card has been removed or disconnected.
Lender-related issues:
The lender’s card or account is no longer active or valid.
The lender’s bank declined the incoming payment.
The lender removed the connected payment method.
The lender’s account has restrictions or holds placed by their bank.
System-related issues:
Temporary processing delay or timeout between financial institutions.
Network error during settlement or disbursement.
A retry attempt was already in progress and blocked the new one.
If a repayment fails, it automatically enters a Repayment Recovery state. This gives the borrower a limited window of time to resolve the issue and complete the repayment.
To learn more about how repayment recovery works, click here