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Failed Fundings

What happens when you fail to fund a payroll?

Ayush S (CEO, Warp) avatar
Written by Ayush S (CEO, Warp)
Updated over a month ago

Understanding Failed Payroll Fundings

A failed funding occurs when your bank account declines to cover a payroll/tax debit for a given payroll.

Using ACH blocks? Whitelist our IDs to ensure smooth payroll operations
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If you've set up ACH blocks with your bank, you must whitelist Warp to run payroll. An ACH block is one of the more common causes of funding failures, especially if you use Mercury or Brex as your bank.

To avoid failed fundings (and delays to payroll), companies must whitelist both of the following ACH company IDs:

  • 1209306000

  • 942875288L

What happens if a failed funding occurs

1. Bank ACH Fee: A $100 fee will be charged by our processing bank. This fee is not up to Warp, it is charged by the bank, and is the same across every payroll platform.

2. Payroll Access: Your ability to process payroll will be temporarily blocked until our automatic re-debit clears, and your account is placed in Not Good Standing with our bank.

3. Processing Speed Downgrade: Your access to next-day and 2-day payroll processing will be suspended for a period of time.

❗ Account Termination

Upon reaching 6 failed fundings, our banking partner will terminate your payment services access, which will result in the termination of your Warp services. It is important to keep your company bank account sufficiently funded for payroll.

Required Funding

Your bank account must have enough funds to cover payroll. The exact Withdrawal Amount is clearly displayed for every payroll before processing. This is the sum of all Net Pays and Employer and Employee Taxes.

Critical Deadline

Ensure full funding is available by 4pm PT on your scheduled debit date in Warp.

Resolving a Failed Funding

If a funding failure occurs, you will receive a notification and wire transfer instructions will appear on your dashboard. Following these wire instructions will help expedite the resolution of your failed funding and get your account back in Good Standing

πŸ’‘ Tips to Prevent Failed Fundings

  • Use Plaid to connect your business account for secure, accurate bank details

  • Maintain sufficient funds in your business bank account

  • Set up auto-transfer rules in your bank account to automatically fund it when balance drops below a threshold

  • Verify sufficient funds are available before approving payrolls

  • Whitelist our ACH IDs if you use the ACH block feature in your bank account.

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