Skip to main content

Why is my Merchant Past Due/Delinquent?

Ewelina Renkowska
  • Updated

Overview

If an invoice is not paid within the billing term, it is considered Past Due. A merchant's gateway account will be marked as Past Due 3 days after their first failed payment. If their account remains past due it will automatically be suspended and they will no longer be able to process transactions.

A merchant account that is marked delinquent refers to the state of being past due on a debt. The merchant's gateway account will be marked as delinquent after 14 days after the first failed payment. When a merchant account is marked delinquent, it will make the account unusable as the merchant will not be able to log in, or process transactions.

What happens when the First Payment Fails?

When the FIRST payment fails:

  • A $25.00 return fee is added to the merchant's account.
  • The affiliate is emailed immediately.
  • After 3 days after the first failed payment the merchant's account is marked past due and the merchant and the affiliate are emailed.
  • After 8 days after the first failed payment the merchant and the affiliate are emailed again.
  • After 14 days after the first failed payment, the merchant is marked delinquent and will no longer be able to log into their account.

What should I do before Re-attempting the Charge?

If the merchant receives an error from their bank, the error will be listed in the 'Account Past Due Notification' email that is sent to the merchant and partner. The email will provide the ACH Return Code and ACH Return Code Description. 

If our ACH provider receives this error code R03:No Account/Unable to Locate or any error code besides R01:Insufficient funds or R09:Uncollected Funds, they will add a flag to the account and AUTOMATICALLY CANCEL ALL FUTURE PAYMENTS until that flag is removed.

With this specific error, it is most likely an issue with the bank account/routing number entered into the gateway (e.g. too many 0s or a missing number). Please verify the account and routing number with the merchant and update the billing information if necessary. If the account is correct then please follow the steps listed below to resolve this issue.

*** To avoid additional $25 fees, do not re-attempt any charge using the same account number before the following steps have been completed. This does not take effect if you change the account number. Please call in with questions. ***

  1. To correct this issue, first the merchant will need to reach out to their bank and resolve the issue. Please advise the merchant that the billing will show as Gateway Services Web Payment and the corporate ID for NMI is 3383693141.
  2. Second, after the merchant's bank issue is resolved, contact support@nmi.com to let us know it has been corrected and to request the flag be removed from the check processor. Our Support Team will work with our ACH provider to remove the flag from the merchant’s account.
  3. Third, do not resubmit the payment until you have received confirmation from our Support Team that the flag has been cleared. Once you receive confirmation that the flag has been removed, log in to your Partner  Portal → head over to 'List Accounts' → click on the merchant name → under 'Billing Information' click on the 'Re-attempt Charge' button. 

What happens if the Balance cannot be Collected from the Merchant?

The balance will be collected from you, the affiliate, after 6 months. The gateway gives a 6 month grace period to allow our affiliates the opportunity to collect any delinquent fees. After the six month period the fees are applied to residuals.

Related articles