If you are a Premium Plan member, TurboTenant sends you the funds for your rent payment before your tenant’s bank has debited the charge.
With all ACH payments, there is some risk that your tenant’s payment fails. This most commonly results from insufficient funds but it can also happen due to a stop payment or an error on the part of their bank. We make efforts to prevent these situations through early detection and warning your tenants when we believe their account balance is low when they make a payment.
If your tenant's payment fails after we have made the deposit to your bank, TurboTenant will automatically reverse the funds that we deposited to your account — otherwise known as a "deposit reversal."
If this happens, we will alert you via email that the payment failed and the deposit will be reversed. We also alert your tenant that their payment has failed so they can retry the payment.
Note: This only applies to landlords who are Premium Plan members or Legacy TurboPay subscribers. For all other rent payments, TurboTenant will not deposit funds into your bank account until the renter's payment has cleared.