What happens if a bank transfer fails or bounces?

When StretchDollar processes a reimbursement, we initiate an ACH transfer from your company bank account to your employee's bank account. StretchDollar does not pay the employee's insurance carrier — the employee pays their premium to the carrier directly; StretchDollar only handles the reimbursement between your business and the employee.

If that bank transfer fails or "bounces," the reimbursement did not successfully complete — even if someone expected the money to move that day.

Why a transfer might fail

• Insufficient funds in the company bank account when the ACH debit is attempted
• Invalid, closed, or outdated bank account details
• An ACH debit block or "not authorized" setting on the business account (common with business banking)
• Incomplete Account Setup or Bank Setup / verification
• An issue with the employee's linked bank account on the receiving side

What happens in StretchDollar

• The reimbursement may remain Pending (or otherwise not fully processed) until the issue is resolved and the payment can be reprocessed
• Funds are not successfully deposited to the employee until a transfer completes
• Your employee's health insurance relationship is unchanged — they still owe their premium to the carrier and should keep paying the carrier directly

What you should do

1. Check Bank Setup in the Company Portal and confirm the connected business account is correct and verified.
2. Confirm the company account has enough funds around payment timing (auto-reimbursements often run around the 25th for the following month's coverage; manual claims process after you approve them).
3. If your bank blocks ACH debits, contact the bank to allow ACH debits for StretchDollar/Dwolla, or connect a different account.
4. Ask the employee to confirm their Benefits Portal bank connection is still valid.
5. Review the pending reimbursement in Reimbursements / Auto Reimbursements and contact support@stretchdollar.com if you need the transfer reprocessed after the bank issue is fixed.

Important reminder for employees

Remind employees that a failed reimbursement does not cancel or pay their policy. They remain responsible for paying their insurance carrier on time. They can submit One-Time Reimbursements if they are not going to receive their Auto-Reimbursement in time.