--- updatedAt: 2026-06-24T19:39:41.000Z agentTools: projectIndex: https://docs.checkhq.com/llms.txt --- # Handling Failed Payments You can recover failed payments using the Payments API ### Failed Payments Payments can fail for a variety of reasons - we give you visibility into the reason for the failure using the `failure_code` on the payment object. Two of the most common reasons for failure include * `insufficient_funds` : This indicates a debit attempt failed due to a lack of available funds in the company's bank account. In this case, the company can add additional funds to their bank account and retry. * `account_closed` : This indicates a payment failed due to the closure of a bank account. In this case, a new bank account must be created to retry the payment. Refer to [Bank Account Verification](https://docs.checkhq.com/docs/bank-account-verification) for additional information. ### Retrying Failed Payments Both failed credit and debit payments can be retried. Note that fetching the Payment object and reading its `can_retry` field will guide whether a particular payment can be retried. For debit payments, two options are available: 1. \[Recommended] Retrying with a wire payment. Using the `use_wire` retry method will provide the relevant wiring details so the company can fulfill their debt obligation by sending Check a wire. 2. Retrying with a new or existing bank account. Specifying a new `bank_account` id will initiate a new debit on the desired bank account. **Warning**: Retrying using a new bank account likely results in employees not getting paid on payday due to limitations of the ACH network! After a re-debit attempt is initiated, we must wait 3 banking days to clear the ACH return window (period of time in which the payment could still fail). Additionally, since the debit failed once, there is an additional risk of a subsequent failure. For this reason, we highly recommend using wires to recover from failed debit payments, as they land within a matter of hours rather than days. For credit payments, retrying is only possible by specifying a new bank account. Retried credit payments can be expected to settle within 1-2 banking days. > 📘 Funding strikes > > Each time an employer fails to fund a payroll (for example, a debit that fails with `insufficient_funds`), Check records a **funding strike** against the company. A company's active strikes factor into Check's processing period demotion and termination decisions. You can retrieve a company's active strikes using the [List active funding strikes](https://docs.checkhq.com/reference/list-active-funding-strikes) endpoint. For more on resolving the underlying funding failures, see [Resolve Funding Failures](https://docs.checkhq.com/docs/resolve-funding-failures). ### Refunding Failed Credit Payments In some situations, refunding credit payments may be preferable to retrying. Refunding a credit payment means that the company will be refunded for the amount of the employee's net pay with the expectation they will pay the employee off-platform, usually by a check. Refunding a payment will also result in the payment method of the corresponding `payroll_item` or `contractor_payment` switching to `manual`. The net pay funds will be returned to the company's bank account in 1-2 banking days. Given that funds would be returned to the company, we require that the company have funded its payroll in the first place - we won't refund a credit payment associated with an unfunded payroll. Similar to the `can_retry` field, we recommend leveraging the Payment object's `can_refund` field to dictate whether a particular payment is eligible for refund. > 🚧 Status Changes from Refunds > > [Refunding a failed payroll item](https://docs.checkhq.com/reference/refund-a-payment) or contractor payment sets `payment_method` to `MANUAL` and marks the item status as `paid`. If all items in the payroll are now complete, the parent payroll status will transition to `paid`. Status-change webhooks will fire for the item and, if applicable, the payroll, so ensure your automations and notifications handle `MANUAL` paid items appropriately. ### Console #### Console surfaces Payments as well as the ability to retry or refund payments. {2218} {2268} *** #### The retry panel shows the available means of retrying - using a wire or a new bank account {1344} After a subsequent wire attempt has been created to recover from the failure, the "Wire details" button becomes available {2684} {3818} ### API Payments and payment attempts can be viewed using the API via the [Payment and Payment Attempt objects](https://docs.checkhq.com/reference/the-payments-object). You can read or list these objects. ```json { "id": "pyt_vIFHhvyGN47ej1upyIT8", "status": "paid", "amount": "4522.0400", "type": "company_cash_requirement", "parent_type": "payroll", "parent_id": "pay_ENA4k8LMHbgpV07GLGSv", "payment_attempts": [ { "id": "pya_GaeJoEAzbqqc2D9GMfOF", "created_at": "2022-02-18T21:32:44.957364Z", "expected_completion_date": "2022-02-25", "status": "paid", "failure_code": null, "payment_method": "wire", "payment_instrument": null, "wire_details": { "account_number": "3302826020", "routing_number": "121140399", "bank_name": "JPMorgan Chase", "account_name": "JPM for benefit of CHECK TECHNOLOGIES", "account_address": "270 Park Avenue, New York, NY 10017", "amount": 4522.04 } }, { "id": "pya_Kgl6ERboridVSfv4XKdT", "created_at": "2022-02-18T20:14:40.713837Z", "expected_completion_date": "2022-02-23", "status": "failed", "failure_code": "insufficient_funds", "payment_method": "ach", "payment_instrument": "bnk_W7hjDGn6sU1d3U8dr9bq", "wire_details": null } ], "can_retry": false, "can_refund": false, "direction": "debit" } ``` Additionally, payments can be [retried](https://docs.checkhq.com/reference/retry-a-payment) or [refunded](https://docs.checkhq.com/reference/refund-a-payment) using the API.