Handling Payment Failures for Re-Leased Pay

  • Updated

It's not uncommon for tenant payments to encounter issues, especially when using direct debit methods. This article aims to guide you through the steps to take in the event of a tenant's payment failure within Re-Leased. Understanding this process will help you manage your financial records accurately and ensure consistent tenant communication.

 

Immediate Actions After a Payment Fails

When an invoice is paid via direct debit, the payment status will initially appear as processing. However, if the payment fails, Re-Leased takes the following immediate actions:

  1. An email notification is sent to all company users with the Administrator role, informing them of the failed payment.
  2. Re-Leased attempts to automatically reverse the payment under the following conditions:
      • If your company uses Client/Trust Accounting and the payment has not been previously reconciled or manually reversed, an automatic reversal will occur.
      • If your company uses Xero for accounting purposes, the payment must be reversed in Xero first, and then the changes should be synced with Re-Leased.

3. An email is dispatched to the tenant to notify them of the failure. Depending on whether the payment was reversed automatically or manually, the tenant may either retry the payment or arrange an alternative payment method.

 

Understanding Payment Failures

Payment failures can occur for several reasons, including:

  • Insufficient funds in the tenant's bank account.
  • The tenant's bank does not authorize the transaction.
  • The tenant's bank account details were entered incorrectly.

 

How to Handle Payment Failures

If Automatic Reversal is Possible

  1. The payment status within Re-Leased reverts back to its original state.
  2. The tenant can then be prompted to re-attempt the payment using the direct debit method.

If Manual Reversal is Required

  1. A user with the appropriate permissions must manually reverse the transaction in Re-Leased or their connected accounting.
  2. Fresh arrangements for payment must be discussed and set up with the tenant.

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