What does it mean when a payment method gets blocked?
When a payment method for debit orders is blocked, the bank account that is being debited can no longer be debited for premiums.
Why does a payment method get blocked?
The table below outlines the reasons that a payment method can get blocked:
|Reason shown on Root Dashboard
|What This Means
|The bank account holder has instructed the bank to block us from debiting their account.
|Debit in contravention of payer’s authority
|Payment stopped (by account holder)
|Previously stopped via stop-payment advice
|4 consecutive payment failures
|There have been 4 consecutive attempts to collect premiums which have all failed. The system will automatically block the payment method as a result.
|Account closed (with no forwarding details)
|The account cannot be debited because it is closed.
|No such account
|The account does not exist. In this instance, it is very likely that the bank account details were captured incorrectly.
|Account frozen (as in divorce etc)
|No transactions are allowed to take place on the account, including debits.
|Debits not allowed to this account
|The account type does not allow for debits.
|ID doesn’t match verification
|The details of the bank account holder as stipulated on the policy don’t match the bank’s records.
Can a payment method be unblocked?
With permission from the policyholder, their bank details can be resubmitted on the Root dashboard, and BANV (bank account verification) will run against the updated bank details. If the banking details are correct, the payment method will be unblocked immediately.
What happens once a payment method has been unblocked?
Once a payment method has been unblocked, Root can submit debits for collection from the bank account again. The first billing attempt will be on the next billing day. The current premium + arrears will be collected on the next billing day.
Bank account holder: The person from whose account premiums are paid (this is not necessarily the policyholder).
Debit: A premium collection via debit order.
Payment method: In this context, it is a debit order.