You scheduled payment with Pay over time but received a notice that one of the repayments failed.
Why did the repayment fail?
There are 2 main reasons repayment could fail:
- Insufficient funds in the bank account.
- A technical issue.
Notifications that the repayment failed
There are 2 ways you are notified:
1. By email:
The subject line: “⚠️ Action required - Your repayment for installments has failed”
2. In Pay inbox:
In the payment details of the failed payment, you see an error message marked in red. Also, under Installment deducts, you’ll see which repayment failed.
1. You have 7-10 days from the deduction date to recover the repayment and keep the installment terms.
2. In case of a technical issue, we will try to collect the repayment again within 7-10 days.
3. On day 14 or if the 2nd attempt to collect the repayment failed, the issue will be handed over to Credit Key for future handling.
4. Until this issue is resolved, current Pay over time payments will be on hold, and no new installment payments can be scheduled.
5. You will get an email notification letting you know that the issue was handed over to Credit Key. Here’s what it looks like.
Resolving a failed repayment
You need to update your bank details from which the repayment will be deducted.
1. In the email click Resolve this issue OR sign in to Melio and click Pay in the left sidebar.
2. Your failed repayment will be at the top of your Inbox.
3. In repayment details on the right, click Resolve and retry repayment.
4. Select the bank account from which we can deduct the repayment.
NOTE: What to do if you have only 1 bank account connected
If you have only 1 bank account connected to your Melio account:
- Add funds to the bank account to cover the repayment.
- Add and connect a new bank account with sufficient funds. You can connect it instantly with Plaid or with micro-deposits (takes 2-3 days). Return to the failed repayment to recover it by selecting the new bank account you just connected.
5. In Review and confirm, make sure the details are correct. The updated details will be marked with a blue label “Due”. Click Confirm repayment.
That’s it. Your repayment will move to the Scheduled tab with the updated delivery details.
You’ll get an email notification confirming this change.
Email notification when the unresolved repayment is handed over to Credit Key
When the failed repayment isn’t resolved and we can’t collect it from the bank account, the issue is handed over to Credit Key.
You’ll get an email to notify you about it.
Subject line: ⚠️ Important: Repayments for installments are now being handled by Credit Key