Employee Repayments on Ramp is a feature that 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 and for employees to self-initiate repayments, making it simple for both admins and employees to manage and resolve any outstanding expenses.
For Admins, Owners, and Managers
To successfully request and receive repayments, ACH needs to be enabled via Reimbursements > Settings > Enable ACH. If you company is multi-entity, a bank account needs to be linked to each entity.
Requesting Repayment on a Transaction:
- Navigate to the "Out of Policy" tab in the Ramp dashboard.
- Locate the transaction that requires repayment and click on it.
- In the transaction details, click on "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.
Confirming Repayment Request:
- The employee will receive an email notification informing them of the flagged transaction and the requested repayment. Note that an employee must have a verified US bank account, which takes 2-3 days to verify. Repayments are not yet available to employees with international bank accounts.
- Once the employee has made 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 5 business days.
To repay your company for accidental or out-of-policy transactions, please see the article: Accidental or personal transactions.
FAQ on Employee Repayments
Here are some frequently asked questions about employee repayments:
- Can employees self-initiate a repayment for accidental charges? Yes, employees have the option to self-initiate repayments for any accidental charges. Please see the article: Accidental or personal transactions.
- What's the repayment processing timeline? Repayments take 5 business days to go from the employee's bank account to the business bank account. If an employee doesn't have a bank account connected, it may take 2-3 days to complete the verification process.
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.
How do I handle accounting for Employee Repayments? Employee will be notified when bank account is ready for verification and will need to confirm two deposits shown in their account.
- In which bank account will I receive the repayment as an admin? We'll send the repayment funds to the business bank account that's set as the auto-pay source in Banking Settings.