Common mistakes

2 min read · Chapter 9 of 10

What usually goes wrong

Symptom	Likely cause	Reversal path	Who absorbs it
Order blocked, customer furious	Credit hold: over limit, past due, or the insurer cut its limit	Release, ship part, prepay or raise the limit; review limits on triggers, not only yearly	Seller (lost or late sale)
Invoice past due, payer silent	Rejected at the payer's portal (PO, receipt, entity, tax certificate) or stuck in approvals	Check portal status; fix and reissue; then dun	Seller (days; the clock may restart)
Retailer deducts from the payment	Promotion, pricing, shortage, late or mislabeled delivery	Apply partially; open a case; pull proof of delivery and the promotion agreement; dispute before the deadline	Seller if undocumented or late
Money in the bank, sender unknown	Payer paid from a new remit-from account or a parent entity	Park in suspense; map the account to a payer; keep an alias table; apply	Seller (labor, DSO)
Payer known, invoices unknown	Remittance lost: CCD with no addenda, wire text cut short, email to a generic inbox	Ask the bank for full addenda; parse the inbox; ask the payer for CTX or a portal payment	Seller
Customer paid you after you sold the invoice	Old remit-to still on the invoice, or notice ignored	Pass the cash to the factor; fix remit-to on open invoices	Payer still owes the factor
ACH debit returned R01 or R29	Insufficient funds; or a debit block or no valid authorization	Re-present or switch rail; ask the payer to allow your originator ID, get a fresh authorization	Seller; R29 counts toward the 0.5% threshold
"We paid", cash never arrived	BEC: payer paid a fraudster's account	Payer's bank recalls within hours	Payer by law; often negotiated
Check applied, then returned	Insufficient funds, stop payment, counterfeit	Reverse, reopen, fee, re-collect	Seller
Surcharge complaint or acquirer fine	Surcharged debit, above the cap, in a banning state or province, or without notice	Refund surcharges; check card type and location first	Seller
Canadian PAD money taken back	Business PAD claim: no valid agreement or notice	Keep Rule H1 agreements; then pursue outside the rules	Seller
Customer files for bankruptcy	Insolvency	Stop shipping; claim goods priority or reclamation (US) or repossess (Canada); claim on insurance; prepare preference defenses	Seller, less insurance

Order blocked, customer furious

Likely cause: Credit hold: over limit, past due, or the insurer cut its limit
Reversal path: Release, ship part, prepay or raise the limit; review limits on triggers, not only yearly
Who absorbs it: Seller (lost or late sale)

Invoice past due, payer silent

Likely cause: Rejected at the payer's portal (PO, receipt, entity, tax certificate) or stuck in approvals
Reversal path: Check portal status; fix and reissue; then dun
Who absorbs it: Seller (days; the clock may restart)

Retailer deducts from the payment

Likely cause: Promotion, pricing, shortage, late or mislabeled delivery
Reversal path: Apply partially; open a case; pull proof of delivery and the promotion agreement; dispute before the deadline
Who absorbs it: Seller if undocumented or late

Money in the bank, sender unknown

Likely cause: Payer paid from a new remit-from account or a parent entity
Reversal path: Park in suspense; map the account to a payer; keep an alias table; apply
Who absorbs it: Seller (labor, DSO)

Payer known, invoices unknown

Likely cause: Remittance lost: CCD with no addenda, wire text cut short, email to a generic inbox
Reversal path: Ask the bank for full addenda; parse the inbox; ask the payer for CTX or a portal payment
Who absorbs it: Seller

Customer paid you after you sold the invoice

Likely cause: Old remit-to still on the invoice, or notice ignored
Reversal path: Pass the cash to the factor; fix remit-to on open invoices
Who absorbs it: Payer still owes the factor

ACH debit returned R01 or R29

Likely cause: Insufficient funds; or a debit block or no valid authorization
Reversal path: Re-present or switch rail; ask the payer to allow your originator ID, get a fresh authorization
Who absorbs it: Seller; R29 counts toward the 0.5% threshold

"We paid", cash never arrived

Likely cause: BEC: payer paid a fraudster's account
Reversal path: Payer's bank recalls within hours
Who absorbs it: Payer by law; often negotiated

Check applied, then returned

Likely cause: Insufficient funds, stop payment, counterfeit
Reversal path: Reverse, reopen, fee, re-collect
Who absorbs it: Seller

Surcharge complaint or acquirer fine

Likely cause: Surcharged debit, above the cap, in a banning state or province, or without notice
Reversal path: Refund surcharges; check card type and location first
Who absorbs it: Seller

Canadian PAD money taken back

Likely cause: Business PAD claim: no valid agreement or notice
Reversal path: Keep Rule H1 agreements; then pursue outside the rules
Who absorbs it: Seller

Customer files for bankruptcy

Likely cause: Insolvency
Reversal path: Stop shipping; claim goods priority or reclamation (US) or repossess (Canada); claim on insurance; prepare preference defenses
Who absorbs it: Seller, less insurance

Ranking these by volume or cost needs an operator's data; I haven't found any public.