You filled out an entire page of details, generated multiple OTPs, or even used net banking credentials for your NACH e-mandate. Yet, after all that, your NACH e-mandate failed. Now you are back to square one, having to reinitiate the whole process. It’s frustrating, right? But by considering some factors, the entire process will be seamless.
You might think it’s complex, but actually, it’s not if you take the necessary steps. It’s an efficient and effortless way to authenticate automated / recurring payments. And it’s designed to simplify the payment process. However, there are several ways NACH e-mandate or NACH payments can fail. Let’s look at the top 5 reasons and the practical solutions to avoid them.
Reasons Why NACH E-Mandate / Payment Fails
- Insufficient funds
The Problem: It’s simply the lack of funds. NACH e-mandate based payment fails when the customer’s account doesn’t have enough balance at the time of the scheduled deduction. This problem is too simple. But it is often overlooked for the same reason.
The Prevention: Maintaining adequate balance in the account, especially around the time of the scheduled payment. Set up reminders in advance and check the balance to ensure no issues.
- Incorrect Bank Details.
The Problem: The payments will not go through if you enter incorrect bank details like a wrong account number or IFSC code.
The Prevention: Go through the submitted details at least twice. Follow the step-by-step instructions during the NACH e-mandate setup process and enter the correct information. Incorporating validation steps can also help catch these errors in real-time.
- Expired NACH E-Mandate
The Problem: Typically, NACH e-mandates have an expiration date. Once the NACH e-mandate is expired, future payments won’t process, unless it’s renewed or newly set up.
The Prevention: Keep track of the expiration dates. Email or SMS reminders with a link to renew the NACH e-mandate can help reduce the failures.
- Technical Issues at the Bank’s End
The Problems: Technical glitches can be a cause of NACH e-mandate failure. These could include server downtimes, connectivity issues, or system errors.
The Prevention: They can be unexpected and are largely out of your hands. However, reporting the issue can help resolve it faster. If the system has auto-reattempt facility, this problem gets resolved automatically.
- Revocation or Rejection by Customer
The Problem: When customers revoke their authorization either by directly canceling it through a bank or by placing a block on the specific NACH e-mandate.
The Prevention: Clear communication with the authorized people about the terms and conditions of the NACH e-mandate. Ensure you understand the rights and obligations when setting up the NACH e-mandate. If the NACH e-mandate has failed, provide alternative payment methods.
Understanding these common mistakes can help you prevent NACH e-mandate failures and ensure a smoother payment process. Being aware of both technical and customer-related challenges helps to make the NACH e-mandate process trouble-free At Paycorp, we streamline recurring payments by simplifying the payment process. By choosing Paycorp, you can rest assured that your payments keep flowing without disruption. We’re here to make your payment process more effective and to keep you in front of any forthcoming difficulties.
