Payment Pad - Direct Banking Errors and Refunds

As per the setup instructions, the Tenant sets up their direct banking instructions directly with their financial institution. Payment Pad processes the payments and updates the ledger once funds have been received and matched with the tenants account details.

In the following scenarios payment cannot be applied and Actions need to be taken by Property Management Company and Tenants.

1) Building Merchant Bank Account has been disabled -  In this case the payment cannot be processed and the payment cannot be applied or transferred.

2) Tenant Made Payment to wrong account for active merchant - This case sometimes happens when a building is sold but managed internally with the same PMC. In this case the payment has been applied and funds have been sent to PMC. Tenant needs to contact PMC and ask that they allocate the funds to the correct account number. Payment Pad cannot control funds that have settled. 

3) Tenant made a payment with an invalid account number - In this case the payment cannot be processed and the payment cannot be applied or transferred.

Requesting Direct Banking Refunds:

The tenant will need to provide the following information to their financial institution in order for the refund to be processed:

  • Case Number
  • Tenant Name
  • Date of Payment
  • Amount
  • Financial Institution
  • Bank Contact Name
  • Bank Contact Number
  • Bank Contact Email

The tenant will need to contact their financial institution to send a Funds Transfer form to the fax number associated (The banks Bill Tracing Departments have this number on file)


If the financial institution can send refund requests forms via email, please have the banking institution send the form via email to -- with the subject line of "REFUND REQUEST: "Last name, First Name, Payment Date

This process can take 5-20 business days depending on the financial institution. Payment Pad Charges a $25 processing fee for these cases to the account in question to the tenant.

We've also provided the following attachment that you can send to your Tenant

Direct Banking Refund Request Form

Formulaire de remboursement de pré autorisation de paiement

FAQs -

Q: Why does it take this long? 

A: Direct Banking uses an antiquated banking system. The process is handled manually via Fax and is triggered from the financial institution to avoid fraud.

Q: Where is the money?

A: The money is with Payment Pad until it gets the correct authorization request from the financial institution requesting a refund

Q: How do I know if the funds did not apply and are sitting in Limbo?

A: If after 2-5 business days your ledger has not been automatically updated the chances are high the payments did not apply and the tenant used an old/wrong account number.

Q: Can ANY tenant ask for a refund?

A: If the funds have been settled already no refund can be requested. Refunds need to be discussed with the PMC directly.


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