Reimbursements

Return

Return is the flow that occurs after a payout is completed; however, because the ACH domestic network is asynchronous, the beneficiary bank rejects the payment T+x days later. In consequence, the total amount of the transaction plus any applicable taxes and fees will be credited back.

Return flow

1. Merchant creates a new payout.
2. Localpayment transfers the funds to the beneficiary's account.
3. The payout status changes to Completed.
4. The beneficiary’s financial institution requests the return of funds to the merchant’s account due to an internal error.
5. Localpayment returns the funds to the merchant’s account, the payout status changes to Returned. and the Merchant is notified.

Recall

Recall is the process of recovering a payout when the incorrect beneficiary wire information was provided by the merchant.

Recall Flow

1. Merchant creates a new payout.
2. Localpayment transfers the funds to the beneficiary's account.
3. The payout status changes to Completed.
4. The merchant requests the return of funds by email to the operations team and shares all the necessary documentation.

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Important

• We do not guarantee the recovery of the funds.
• The beneficiary's bank is responsible for determining whether or not to generate the recall.