Why Was My Direct Deposit Application Denied, and How Can I Resolve It?
Direct deposit applications can sometimes be denied for various reasons. Below, we outline the most common causes of denial, steps to resolve them, and additional information to help you successfully set up direct deposit with Patriot Software.
Common Reasons for Direct Deposit Denial
Missing or Incorrect Documentation - Missing proof of your Federal Employer Identification Number (FEIN). Ensure you provide official IRS documentation as proof.
How can a customer prove their FEIN for their direct deposit application?
We will accept proof of a company Federal Employer Identification Number (FEIN) if they provide any of the following documentation from the IRS:
Corporate tax return
501(c)3 Determination Letter
Any State or Federally issued document that includes your FEIN, Business Name, and Business Address
IRS Letter 147C: The IRS can be contacted at 1-800-829-4933 and request this form (it can be faxed to you within 1-2 business days)
Signed 941 or 940 form. It must include both the first and second page (signed)
Signed 1120S form
Signed 8655 form: you will sign and submit one of these forms for your Full Service payroll set up, and we may use it for your direct deposit application as soon as it is verified and with your approval. In some cases, the Risk Team may still request additional documentation if there are discrepancies or suspect fraud.
IRS CP575 form
The tax filing information listed in the provided tax information should match what the customer has in their Patriot account.
Any mail that the customer receives from the IRS (including form SS4) will show the tax filing name on Line 1 of the address and the business name (DBA) will be shown on Line 2 of the address.
Bank account type mismatch. Direct deposit requires a business bank account. If your submitted bank statement shows a personal account, you must provide a statement for a business checking account.
Documents uploaded to the wrong section. If you upload documents to the general "bank statement" section instead of replying to the direct deposit team’s email, your application may not be reviewed correctly.
Eligibility Criteria Not Met - Lack of a history of successful collections. To become eligible, you need at least three successful collections or payrolls paid via wire to Patriot.
Operational or Geographical Restrictions - Patriot Software’s payroll services are only available to businesses operating entirely within the United States. Applications involving international operations or fund movement will be denied.
Steps to Resolve a Denied Application
Review the Denial Reason - Check the email notification you received for the specific reason your application was denied.
Provide Correct Documentation - Submit acceptable proof of your FEIN, business bank account, or other requested documents. Ensure all pages of the required documents are included. Reply directly to the direct deposit team’s email thread with the documentation attached to ensure it is reviewed promptly.
Meet Eligibility Requirements - Establish a history of successful collections if this was the reason for denial.
Notification Process
You will receive an email notification indicating whether your direct deposit setup was approved or denied. Be sure to monitor your email for updates.
Special Cases
International Operations: Businesses with any part of their operations conducted outside the United States are not eligible for Patriot Software’s payroll services.
International Fund Movement: Applications involving international fund movement are prohibited by Patriot’s banking partners.
By following these guidelines and addressing the specific reasons for denial, you can successfully resolve issues with your direct deposit application.