Why is my bank account setup failing?

Ensuring smooth financial operations is key, and ITILITE helps streamline your ACH processes for reimbursements. Occasionally, you might encounter errors, but understanding them makes resolution straightforward and keeps your payouts on track.

Table of Contents

• Prerequisites
• Understanding ACH Verification Stages
• Business Verification Errors
• Employee Bank Account Verification Errors
• Post-Verification ACH Transfer Failures
• Pro-Tips & Guardrails
• Verification & FAQs

Understanding ACH Verification Stages

ACH verification in ITILITE is a robust process designed to ensure secure and accurate transactions. This process typically involves two key stages where verification errors might occur: first, during your organization's business verification, and second, when individual employees verify their personal bank accounts.

Understanding the specific errors at each stage empowers you to take the correct action and keep your reimbursement flows running smoothly. Let's explore the common errors you might encounter and how to resolve them.

Business Verification Errors

When setting up ACH for your company under Organization → Settings → ACH, you might encounter specific verification directives that require your attention. These errors ensure that your business details align with public records and regulatory requirements.

Here are the common issues and the actions you can take to resolve them:

General Business Verification Errors:

• POBoxNotAllowed: If a PO Box is used as your business address, you'll need to update it to a physical address.
• AddressNotAssociatedWithBusiness: If your business address doesn't match public records, update the address or upload proof of address.
• ResidentialAddressRequired: For the controller, an invalid address type was entered. Please enter a valid residential address for the controller.
• EINMismatch: If your EIN doesn't match uploaded documentation, update the EIN to match your official documents.
• LegalDBAMismatch: If your business name and DBA don't match documentation, correct the Legal/Registered Name and DBA fields in ITILITE.
• BusinessDBAMismatch: If your DBA name doesn't match documentation, correct the DBA name in ITILITE.
• SOSNotInGoodStanding: This indicates your business is not in good standing with the Secretary of State. You'll need to update your customer information to resolve this.
• SOSStateMismatch: If your registered state cannot be verified, update your business address to match the registered state.
• RegisteredAgentAddressNotAllowed: If your address leads to a Registered Agent, update it to a physical business address.
• CoWorkingAddress: If your business address is a co-working location, you may need to upload proof of address or update to a residential address.
• AdditionalReviewRequired: If your account is under review, this process typically takes 2–3 business days. Please wait for an update event.

Document-Related Business Verification Errors:

• BusinessAddressDocRequired: Proof of business address is needed. Upload a utility bill, financial statement, or similar document.
• EINDocumentRequired: An EIN letter is required. Upload your EIN assignment letter or an official business document showing your EIN.
• BusinessFormationDocRequired: Formation documents are required. Upload your Articles of Organization or Articles of Incorporation.
• PersonalIDRequired: A personal ID is required. Upload a valid personal ID for the relevant individual.
• ForeignPassportNumberRequired: If a foreign passport number is needed, please provide the foreign passport number.

Employee Bank Account Verification Errors

When an employee adds their personal bank account for reimbursements under Individual → Cards & Banks → Banks, ITILITE first attempts Instant Verification. This method quickly confirms account details using online banking credentials.

If Instant Verification fails after the allowed two attempts, the system automatically falls back to Microdeposit Verification. This ensures a secure alternative for confirming bank account ownership.

Microdeposit Verification Process:

How to verify ACH microdeposits?

During this process, employees will see clear messages indicating the current verification stage:

• Bank Verification in Progress: Your bank details are currently undergoing verification with our banking partner. They will initiate two micro-deposits shortly.
• Micro Deposits Initiated: We've initiated two micro-deposits (each less than $0.10) to your bank account. Anticipate the credits within 1–3 business days to proceed with the verification.
• Verify Micro Deposits for Approval: Take the final step! Verify the micro-deposits in your bank account to complete the verification process.
• Retry Verification (Failed): You have exhausted the allowed three attempts to verify the micro-deposits. Please delete the current bank details and commence a new verification process to move forward.

Post-Verification ACH Transfer Failures

Even after successful bank account verification, an ACH transfer (reimbursement) can occasionally fail. These failures are typically due to issues encountered by the receiving bank.

Here are some common ACH transfer failure codes and their meanings:

• R01: Insufficient funds – The sender's account did not have enough funds to cover the transfer.
• R03: Invalid or missing bank account – The bank account number or type is incorrect or the account no longer exists.
• R10: Unauthorized transaction – The transaction was not authorized by the account holder.

Pro-Tips & Guardrails

Verification & FAQs

After addressing any verification errors, you can check the status of your company's Business Verification by navigating to Organization → Settings → ACH. Employees can monitor the status of their personal bank account verification under Individual → Cards & Banks → Banks.