What happens when direct deposit payments are sent to a closed bank account?

Felicia -

If the bank account that VendorPay direct deposit payments are being transferred into has been closed, don't worry! If the bank no longer allows deposits into the bank account, what will likely happen is that the payment transfers will end up failing. If they do, you'll be automatically notified via email, and you'll be asked to connect a new bank account if you haven't already done so.

Here's what a payment failure email notification typically looks like:

payment-failed-email-redacted.png

 

Payments are always transferred into the bank account that's connected at the time the transfer is initiated. 

Once a different bank account has been connected, any failed payments will be automatically re-tried. We're unable to retry successfully deposited payments though. We're also unable to re-direct payment transfers after they're deposited or while they're in transit. 

It may take some time for our payment system provider to be notified by your bank if payment has failed, so we suggest keeping an eye out to see if you receive the payment failure email notification. If you don't, this means that payment has been successfully deposited. 

 

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