e. Why did the payment processor withdraw funds (overdraft) from my bank account?
Depending on your merchant account profile, our payment processor may withdraw funds from your bank account for a few reasons.
- 1
-
To satisfy refund requests made in-app.
- 2
-
Payment has been returned (Failed) in late stages and funds need to be replaced.
If you refund some invoice(s) on TUIO, and your payment processor backend account is at 0 balance or lacks sufficient funds to process all refunds, the processor may overdraft your bank account to cover the amount needed for all the refunds and process them for you. If you have a positive balance in your account at the time of refund, there may be sufficient funds to process the refund without needing to draw funds from your bank account. If you plan on doing a large portion of refunds, it is best to check your account statement on the payment processor backend for the given payment methods you are refunding. If the account statement shows 0 balance, reach out to support and we can put a hold on payouts while funds accumulate so you can have enough balance to cover the amount of refunds you need to make. When the refund process is finished, payouts can resume.
Note that this is not an automatic process; it is at the payment processor's discretion whether your account is enabled for overdraft in these refund situations.
When a payment has been batched and funds deposited in your account but the payment fails later on because of NSF or similar reasoning, the payment processor will need to overdraft your bank account to recoup the funds and bring your payment processor backend account back to zero balance. For example if a payment was sent for $700 and subsequently failed, the Account Statement will show $-700 in the ledger. Your bank account will be drawn for $700 to bring the account back to 0 balance. Note that this is a zero sum transaction as the funds were previously sent and then removed. When the payment is successful you will be made whole for the $700 in your bank account.
