If you’ve processed some large refunds or disputes recently, and haven’t had many new transactions come in to offset those funds, your Neon Pay merchant account may fall below $0. If this happens, and there aren’t any funds coming in to get your balance back at or above $0, your linked bank account may be debited.
When is a debit issued?
- If your account balance falls to or below -$500, a debit will be processed on the next Tuesday at 6pm EST.
- Account balances between -$500 and -$100 will be debited only if they have remained negative for longer than 30 days. These debits are issued once per month on Tuesdays at 6pm EST.
- Account balances between -$0.01 and -$99.99 will not be debited.
How can I tell what caused the debit?
Once your debit has fully processed, the transactions that made up the debit will be available in Neon Pay. You can find your debit report in the Payouts menu, following the link in the notification emails, or in the Balance menu listed as a Debit adjustment.
Once you’ve located your debit, click the hyperlink to open its detail page. Here you will find a list of all the transactions that made up the debit, just like the payout detail page. You can export the complete list of transactions as an Excel or CSV file.
My bank account was debited, but it still says Processing in Neon Pay. How long does it take a debit to process?
Debits can appear on your bank statement as soon as one day after being issued, and take between 5 to 7 business days to settle. A debit status of Processing means the debit has not fully settled between the two banks involved. Debits will not update to a Processed status until the transaction has fully settled, and the entries that make up the debit are available in our processing partner's system. Once the funds are settled and the transaction report is available, the status will update to Processed. To receive an email when the Debit's status changes, you can subscribe to Debit emails on your User Preferences page.
What should I do if a debit attempt fails?
If a debit attempt to your bank fails, please reach out to our support team for assistance. You may need to provide bank documentation in order to continue receiving payouts from Neon Pay.
My bank needs Neon Pay’s bank identification numbers in order to allow debits. Where do I find those?
Reach out to our support team to receive the correct bank identification numbers to provide to your bank in order to allow debits from Neon Pay.
What will the debit look like on my bank statement?
Debits will appear on your bank statement with the same statement descriptor that payouts do. The only difference will be a negative amount instead of a positive amount.
Will I be notified when a debit happens?
Yes, if you have enabled Debit emails. To do so, navigate to User Preferences from the Settings cog in Neon Pay. Make sure that the Subscribe to Email Notifications toggle is on. Then, turn on the Debits toggle. Once this toggle is on, you will receive an email from Neon Pay when a debit is created. It will indicate the amount of the debit, along with a link to the debit record in the portal. The debit will be in a Processing status and the transactions list will not yet be available.
You will receive a second email when the debit updates to a Processed status and its transactions list is ready.
Why haven’t I had a payout generate recently?
Payouts only generate in Neon Pay when there is a positive account balance. If your account balance is negative, your scheduled payout will not be processed. Once your account balance is positive again, you will see a payout process according to your payout schedule.
Why is activity that was previously in a debit now included in my payout?
All account activity must be included in a payout. Debits are issued to offset large or prolonged negative account balances. Once the debit has processed and your account returns to a positive balance, a payout will generate according to your payout schedule. This payout will include all account activity from the time of your last payout, including the activity that made up the negative account balance, and which was included in the debit.
What is a Debit Reimbursement?
After your bank account has been debited, the transactions that created it must still be paid out to you at a later time. Your next payout that follows a processed debit will include those debit transactions, as well as a Debit Reimbursement amount. This is a credit back to you, to offset the funds that were previously debited and make sure that your payout amount balances correctly with your new, positive account activity.