Why Do Payments Fail in Revela?

How Payments Work in Revela

Revela supports three electronic payment methods:

• Bank Transfer (ACH)

• Card Payment (credit or debit)

• Mail a Check for Me (mailed checks)

Each of these methods interacts with a different payment network, and each can fail for different reasons at different points in the process.

When a payment is submitted, Revela creates a payment record and sends the transaction to the appropriate payment processor. The payment starts in a Pending or Processing status while the processor verifies the transaction. If the payment is accepted, it moves to Completed. If it is rejected for any reason, Revela marks the payment as Failed and, where applicable, automatically reverses the associated accounting entries.

The reason a payment fails is always displayed on the payment detail screen. When you open a failed payment, you will see a red status message with a brief description of what went wrong.

In many cases, Revela also sends an email notification to the affected party explaining the failure.

ACH (Bank Transfer) Failures

ACH payments are processed through the national bank-to-bank transfer network. Unlike card payments, ACH transactions are not approved or declined instantly. A bank transfer can appear to go through initially but then be returned by the receiving bank days later. This is the most common source of delayed payment failures in Revela.

When an ACH payment fails, Revela displays the return reason on the payment detail screen. The most common ACH return reasons are explained below.

• Insufficient Funds - the most frequent reason for ACH failures. The payer’s bank account does not have enough money to cover the transaction. When this happens, Revela labels the payment as failed and automatically creates a Returned Payment Fee (NSF fee) on the resident’s ledger, if your management contract is configured with an NSF charge preset. The resident receives an email notifying them that the payment failed and asking them to ensure funds are available before retrying.

• Bank Account Closed - the bank account associated with the payment is no longer active. The payer needs to update their payment method on file with a current bank account before they can make another payment.

• No Bank Account / Unable to Locate Account - the account number provided does not match any account at the receiving bank. This typically happens when bank account details were entered incorrectly. The payer should verify and re-enter their routing and account numbers.

• Authorization Revoked by Customer - indicates the account holder has told their bank to stop accepting debits from this source. This may happen when a resident disputes a recurring charge with their bank rather than canceling it through Revela.

• Payment Stopped - the payer placed a stop payment order on this specific transaction through their bank.

• Customer Advises Not Authorized - the account holder has informed their bank that they did not authorize this particular transaction. This is often associated with disputes and may require direct communication with the resident to resolve.

• Bank Account Frozen - the funds in the account are unavailable due to a legal hold or action by the bank. The payer will need to resolve the issue with their bank before payments can be processed from that account.

• Invalid Bank Account Number - the account number format is not valid. The payer should double-check and re-enter their bank account information.

Note: Other, less common ACH return reasons include issues like improper formatting, duplicate entries, or the receiving bank being unable to process the transaction. In all cases, the specific return reason is displayed on the payment detail screen in Revela.

Credit/Debit Card Payment Failures 

Card payments are typically approved or declined at the moment they are submitted. When a card payment fails, Revela immediately displays the decline reason on screen, and the payment is recorded with a Failed status. 

• Generic Decline - the most common card decline message. It means the card issuer rejected the transaction without providing a specific reason. The cardholder should contact their bank or card issuer to find out why, then retry the payment. 

• NSF (Insufficient Funds) - the cardholder does not have enough available credit or funds on the card to cover the transaction amount. This is essentially the card equivalent of a bounced check. 

• Card Expired - the card’s expiration date has passed. The cardholder needs to update their payment method with a current card. 

• Incorrect CVV - the three- or four-digit security code entered does not match what the card issuer has on file. The payer should re-enter their card details carefully. 

• Account Error - indicates a problem with the card account itself, such as a restriction or hold. The card holder should contact their bank to resolve the issue. 

• Account Closed - the card account is no longer active. The payer needs to use a different payment method. 

Note: Other card decline reasons you may encounter include Communication Error (a temporary issue between processors, retry shortly), Card Not Permitted or Trans Not Permitted (the card type or transaction type is not accepted), or Security Violation (the issuer flagged the transaction for security review). In each case, the decline reason is displayed directly on the payment screen and included in any failure notification email. 

Mailed Check (PostGrid) Failures 

When you select Mail a Check for Me as the payment method, Revela generates a physical check and sends it through the mail via PostGrid. Because this process involves printing, mailing, and physical delivery, failures can occur for different reasons than electronic payments. 

A mailed check moves through several stages: Check Processing, Check Processed for Delivery, and finally Check Delivered. If something goes wrong at any stage, the status changes to Failed or Delivery Canceled, and the payment is automatically voided in Revela. 

The most common reason a mailed check fails is a missing or unverified payee address. Before Revela can mail a check, the recipient must have a valid, verified mailing address on file. If the address is missing or has not been verified, the check cannot be sent. To resolve this, navigate to the payee’s profile and confirm that their mailing address is correct and verified. 

A mailed check can also fail if the sender (payer) does not have an address on file. Both the sender and recipient addresses are required to generate the check. 

Another prerequisite is that the bank account used for the check must be fully configured for check mailing. This includes having the bank branch information on file and a representative signature uploaded. If any of these are missing, the check will fail to be sent.

The error message in Revela will indicate what is missing. Examples include:

• The bank account representative must have a signature

• Bank branch not found

If a check is already in transit and PostGrid reports a cancellation (e.g., due to an address issue detected during processing), Revela will automatically void the payment and update the status to Delivery Canceled. 

Scheduled Payment Failures 

Residents can set up scheduled payments (one-time or recurring) through their tenant portal. When a scheduled payment fails, the behavior is slightly different from a one-time payment made by a property manager. 

If a scheduled payment fails, Revela records the failure reason on the scheduled payment record and sends the resident an email with the subject line “Unable to Process Scheduled Payment.” The email includes the specific reason for the failure and a link for the resident to review and retry their payment. 

Scheduled payments are not automatically re-attempted after a failure. If the scheduled payment is recurring, it will not run again the following month unless the resident successfully retries it first. This is an important point to communicate to residents who rely on autopay, a single failure will pause all future scheduled payments until the issue is resolved. 

The failure reasons for scheduled payments are the same as those described above for ACH and card payments, depending on which payment method the resident has on file. 

What Happens When a Payment Fails

When Revela detects a payment failure, several things happen automatically to keep your accounting accurate. 

• The payment is reversed. Revela creates reversal journal entries that undo the original accounting impact of the payment. This means the invoices that were paid are returned to an open balance, and the payer’s ledger reflects that the funds were not received.

• An NSF fee may be charged. For ACH payments that fail due to insufficient funds or similar bank rejections, Revela can automatically generate a Returned Payment Fee on the resident’s ledger. This fee is based on the NSF charge preset configured in the lease or agreement settings. If no NSF preset is configured, no fee is added.

• Email notifications are sent. The payer receives an email explaining that their payment failed, including the failure reason. For resident payments, the email includes a link back to their portal to review the failed payment and attempt payment again. For payments made to owners or vendors (outbound ACH), the property manager or company representative is notified.

• The payment status updates to Failed. On the payment detail screen, the status displays in red with the specific failure reason shown in a message below the status. This information is always available for reference when following up on failed transactions. 

How Revela Communicates Payment Failures 

Communications to Residents 

When a resident’s payment fails, they receive an automated email from Revela explaining the issue. In most cases, the resident simply needs to ensure they have sufficient funds and retry the payment through their portal. If the failure reason involves a closed account, an expired card, or an authorization issue, you may need to reach out directly and ask the resident to update their payment method. 

For scheduled payment failures, make sure the resident understands that their autopay has been paused. They will need to log in to their portal, review the failure, and successfully retry the payment before their recurring schedule will resume. If the issue is not resolved before their next payment date, the scheduled payment will not run. 

If a Returned Payment Fee was charged, let the resident know that the fee was assessed because their bank returned the payment. Reference the specific return reason (such as insufficient funds) so the resident understands why the fee was applied. 

Communications to Owners 

When an ACH payment to an owner fails, for example, a disbursement that was rejected by their bank, the property manager is notified by email. The most common reason for owner payment failures is outdated bank account information. Reach out to the owner and ask them to verify their bank details, including routing number and account number. Once their information is updated, you can reprocess the disbursement by creating a new payment through Accounting > Payables > Selecting Actions > Pay on the invoice that is unpaid. 

Communications to Vendors

Vendor payment failures follow the same pattern as owner payments. If an ACH to a vendor is returned, check the failure reason on the payment detail screen. Common causes include incorrect bank account details or a closed account. Contact the vendor to confirm their current banking information, then submit a new payment. 

For mailed checks to vendors, if the check fails due to an address issue, verify the vendor’s mailing address in Revela and ensure it has been verified before reattempting the payment. 

Best Practices 

• When a payment shows as Failed, always check the specific failure reason on the payment detail screen before taking action. The reason tells you whether the issue is on the payer’s side (like insufficient funds or a closed account) or a configuration issue that you can resolve in Revela (like a missing address or bank setup).

• When reprocessing a failed payment, always create a new payment rather than trying to edit the failed record. The failed payment and its reversal entries remain in the system as an audit trail. 

• Encourage residents to keep their payment methods up to date in their portal. Expired cards and closed bank accounts are among the most preventable causes of payment failures.

• For scheduled payments, proactively monitor for failures, especially at the beginning of the month when most autopay transactions run. A resident whose scheduled payment fails may not realize their rent was not collected unless they check their email or portal.