How do employee repayments work?

Overview

Ramp's Employee Repayment (a.k.a. "reverse reimbursement") feature allows employees to easily pay back their company for accidental or out-of-policy transactions made on their corporate card. This feature provides an easy process for reviewers to request and receive full or partial repayments for these charges and for employees to self-initiate repayments from the account they have linked for reimbursements.

NOTE: In order to repay through Ramp, an employee must have a US bank account linked and complete our verification process (which can take 2-3 business days to complete). Repayments are not yet available to employees with international bank accounts.

Jump to:

1. For admins, owners, and managers
2. For employees
3. FAQ on Ramp Repayments

For Admins, Owners, and Managers

To request and receive employee repayments, ACH payments must be enabled under the company Reimbursement settings (Expenses > Reimbursements > Settings (in the upper right) > Ensure Reimbursements have been enabled). If your company is multi-entity, this must be turned on for all entities, and a bank account needs to be linked to each entity.

*Please note: If this is not enabled, the option to repay a transaction will not be visible to you or your employees.*

1. Requesting Repayment on a Transaction:

   • Navigate to the Out of Policy tab in the Ramp dashboard under Expenses.
   • Locate the transaction that requires repayment and click on it.
   • In the transaction details, click Flag transaction in the footer.
   • Choose the option ‌Request repayment and enter the repayment amount. You can also add a note if necessary.
   • Click Submit to send the repayment request to the employee.

2. Confirming Repayment Request:

   • The employee will receive an email notification informing them of the flagged transaction and the requested repayment. Reminder: an employee must have a verified US bank account to repay; see above.
   • Once the employee has initiated the repayment, you'll receive a notification in the Ramp dashboard.
   • The repayment amount will be transferred from the employee's bank account to the company's bank account in an estimated five business days.
   • The company must create a manual journal entry to account for the repayment once it is complete.

For Employees

Please see the article: Accidental or personal transactions to repay your company for accidental or out-of-policy transactions.

Frequently Asked Questions (FAQs)

1. Can employees self-initiate a repayment for accidental charges? 
   • Yes, employees have the option to self-initiate repayments for accidental charges. Please take a look at the article Accidental or Personal Transactions.
2. What's the repayment processing timeline?
   • Repayments take five business days to transfer from the employee's bank account to the business account. If an employee needs to have a bank account connected, the verification process may take 2-3 days to complete.

3. How do I handle accounting for employee repayments as an admin? 

   • Currently, Ramp doesn't support accounting for employee repayments. We recommend creating journal entries from the bank feed in your accounting provider to reflect these repayments as bank refunds.

4. How do I handle accounting for Employee Repayments?

   • An employee will be notified when the bank account is ready for verification and must confirm two deposits shown in their account. 

5. In which bank account will I receive the repayment as an admin?
   • We'll send the repayment funds to the business bank account set as the auto-pay source in Banking Settings.
6. Will funds ever be pulled from my account without permission? 
   • No funds will be withdrawn from linked bank accounts without permission for repayment or any other reason.