Issues with reimbursement payments

Overview

When a reimbursement payment fails to process, it’s often due to issues with the payer’s or recipient’s bank account or how it's linked. This article outlines common failure reasons, how to resolve them, and what additional steps you can take if the issue isn't immediately clear.

Common failures and how to fix them

Company bank account issues

When the failure occurs due to issues with the company's linked bank account for reimbursements, the admin must resolve it before a payment can be retried. There is no action item for the employee or admin.

1. Insufficient Funds
   What happens: There isn’t enough money in the business account when the payment is attempted.
   How to fix it:

• Ensure the account has adequate funds.
• Retry the payment or switch to another account

2. Closed or Frozen Accounts
   What happens: The business bank account has been closed or frozen.
   How to fix it:

• Use a valid, active account.
• If you believe the account is active, contact your bank with the transaction ID.

3. Invalid Account Details
   What happens: Mistakes such as typos or outdated routing/account numbers.
   How to fix it:

• Verify that the account and routing numbers are accurate.
• Re-link the correct bank account.

4. Debit Block
   What happens: The business bank has a block preventing debits from Ramp.
   How to fix it:

• Ask your bank to whitelist Ramp’s originator IDs. See the following article: Lifting a debit block on a bank account
• Use another payment method while resolving the block.

Employee bank account issue

When the failure occurs due to issues with the employee's linked bank account for reimbursements, the employee must resolve it before a payment can be retried. There is no action item for the admin or manager.

1. Closed Account
   What happens: The employee's bank account is closed.
   How to fix it:

• Update your banking details to an active bank account

2. Currency Mismatch
   What happens: The employee's account can’t receive funds in the transaction’s currency.
   How to fix it:

• Confirm which currencies the your bank account supports and update if needed.
• Retry the payment in a compatible currency.

3. Rejected Payments
   What happens: The employee's bank rejects the ACH transfer.
   How to fix it:

• Make sure the linked account accepts ACH payments.
• Refer to the trace ID surfaced on the reimbursement and follow up with your bank.

4. Invalid Account Details
   What happens: The account details don’t match the required formats or are not valid for ACH.
   How to fix it:

• Confirm details match a valid checking or domestic ACH account.
• Double-check routing and account numbers.

Frequently asked questions

Am I automatically refunded if a payment fails?

No, if the credit leg fails (e.g., transfer to the recipient), the funds are not returned automatically. You can retry sending the reimbursement without redoing the debit leg.

Why can't my employee link their account?

The account used for reimbursements must be capable of sending and receiving payments. Credit cards cannot be linked.

Why haven't I received my reimbursement yet?

Refer to the payment estimated date shown in the web app. Payments should arrive on the estimated date. Allow a few business days for delays and bank holidays. Otherwise, double-check whether the reimbursement is marked as manually paid. If so, contact your Admin to process the payment outside of Ramp.

Note that the payment process timeline begins after the reimbursement is approved, and most payments arrive within 2 business days, unless your finance team has set up batch payments on a weekly, bi-weekly, or monthly cadence.

My international reimbursement failed. What can I do?

Previously, international reimbursements could not be retried and required resubmission. However, now, you can simply retry failed international reimbursement payments.

I'm still waiting to receive my refund for a canceled reimbursement. What should I do now?

Ramp initiates a refund once the debit has settled and the reimbursement is canceled. Please note, it may take 3-5 business days for the debit to settle. Once settled, we immediately initiate the refund back to your business bank account which may take 2-3 business days.