Returned e-Checks

If your e-check payment for vehicle registration or property taxes on IowaTaxAndTags.org was not successful, you may have questions about what went wrong. Below, we’ve answered the most common questions to help you understand the issue and resolve it quickly.

Why Didn't My e-Check Payment Go Through?

Your bank decides whether to release funds for an e-check payment, not your county treasurer’s office. Even if you entered your account information correctly, your bank may have declined to release the funds. Below are common reasons why your bank returned your e-check payment:

• No Account/Unable to Locate Account: The account number entered doesn’t match the account number listed under your name or the account is not open. In a lot of cases, this is the result of a typo in the account number or routing number attached to the payment. This return reason can also result from an error in the spelling of the account holder’s first or last name, so it is important to double check that all the information is entered correctly when completing checkout.

• Invalid Account Number: The account number entered does not match an account number with the bank, or the account number structure is not valid.  This may be due to extra leading zeros. For example, a customer may have the account number 123456, but on the check, the account number shows as 000123456. Credit union account numbers may contain additional digits after the account number to indicate the type of account. Check with your bank to ask how to enter your account number for electronic payment transactions.

• Non-Transaction Account: The account number entered has been rejected because the account entered is not a transaction account. Non-transaction accounts are typically accounts that do not allow electronic transactions, such as savings accounts or accounts with restrictions on electronic debits or credits.

• Not Authorized: Your bank has indicated that the owner of the account claims the transaction was unauthorized. This can occur for various reasons, including fraud, error, or disputes with the originator of the transaction. The receiver may claim that they did not provide consent for the transaction, or they may dispute the legitimacy of the charge with their bank.

• Corporate Customer Advises Not Authorized: The account holder has notified their bank that the originator of the transaction is not authorized to debit from their account.  This can be due to a debit block on the account that prevents unauthorized organizations from debiting your account.  To prevent a debit block from causing a returned payment, you must notify your bank to authorize ACH Debits by adding the IowaTaxAndTags Company Identification Number: 0000079161 to your account's debit filter.

• Uncollected Funds: The transaction was returned due to uncollected funds in the customer's account—in other words, the customer does not have enough available funds in their account to cover all of their pending transactions.

How Can I See the Full Account Number Used on My e-Check Payment?

For security reasons, the Automated Clearing House (ACH) network used for e-check payments only provides the last four digits of the account number and the reason for rejection. This protects your financial information.

I Received a Confirmation Email That My Payment Was Successful. Why Was My Payment Later Rejected? 

When you submit an e-check payment, you receive an automatic confirmation email indicating the attempt was received, similar to a receipt for a paper check. However, it can take several business days for your bank to validate the account and release funds. If the bank declines the transaction, the payment is returned.

Why Did I Get a Penalty? 

You may be assessed a surcharge for a dishonored e-Check not to exceed $30.00 as provided under Iowa Code section 554.3512 and 331.553(7). If the payment is returned after the due date, additional late penalties may apply.

I received notification of a returned e-Check but the website shows I have nothing due. Do I really owe on the returned e-Check? 

Your County Treasurer may not cancel your payment in the county system right away and depending on the return reason, may give you time to make good on the return prior to cancelling your payment.

• Property Tax Returned Payments:  For returned e-Checks on property tax returns, the online balance due will not be updated until after the county cancels the taxes within the county real estate system.  It is important to follow the repayment instructions included in the returned e-Check notification. NOTE: If you have a returned e-Check on the 1st installment of a tax bill, paying the 2nd installment on IowaTaxAndTags.org will NOT make good on the returned e-Check.  The payment will be applied to the 2nd installment in the county's real estate system and the 1st installment will remain unpaid and subject to late interest.

• Vehicle Renewal Returned Payments: For returned e-Checks on vehicle registration renewals, the online balance will continue to show as paid.  Be sure to follow the repayment instructions from your county treasurer.  NOTE: Failure to make good on your vehicle renewal returned payment will cause your registration to be cancelled within the State Vehicle System and no further renewal notices will be sent on the unregistered vehicle(s).  In addition, a STOP will be placed on your DOT record which will prevent you from titling or registering additional vehicles in the State of Iowa.