What is Indemnification?
Indemnification in PaymentWorks refers to the protection provided to payers against financial loss due to fraudulent payments made through the platform. This safeguard ensures that payments are backed by a system of validation and verification checks that minimize risk.
Key Points About Indemnification
- Bank Verification Status and Indemnification
- Once the registration process is completed, PaymentWorks will carefully review the submitted bank account information to ensure its validity and accuracy. When our review is complete the Bank Verification Status will be marked as “
Review Complete”. Payments made to this bank account will be eligible for indemnification.
- Once the registration process is completed, PaymentWorks will carefully review the submitted bank account information to ensure its validity and accuracy. When our review is complete the Bank Verification Status will be marked as “
- Indemnification at the Transaction Level
- Payers with the appropriate permissions can review the indemnification status for each payment transaction within the PaymentWorks application.
- This transparency allows payers to assess whether a payment is protected under the indemnification terms.
- Risk-Based Decision-Making
- PaymentWorks evaluates multiple factors, including the payment amount and account validation status, to decide if a transaction falls within the acceptable risk tolerance for indemnification.
- Limitations and Exclusions
- Indemnification applies only to U.S. domestic ACH payments processed through the PaymentWorks platform.
- Payments made outside the platform, via non-ACH methods, or without adherence to established validation processes are not covered under indemnification.
- Payers are encouraged to follow best practices for payment approval workflows to maximize their protection.
Why was my payment not indemnified?
- Withheld for Payment Review
or Removed from File 
- PaymentWorks has determined that this payment requires additional verification
- This will prompt the Fraud Operations team to perform additional outreach to the vendor to reattempt verification.
- If you have a phone number directly linked to the vendor's business that was not submitted in their registration, you can open a support ticket to provide this information to PaymentWorks. Please ensure that the phone number is a main line, office line, or another verifiable business contact number.
- Bank Account Status: Unknown
- This status indicates that the Bank Account Number, ABA Routing Number, or token entered is not recognized in the PaymentWorks platform.
- Any discrepancy in these numbers, including small formatting differences (e.g., a missing or extra preceding zero in the Bank Account Number), will cause the payment to show as NOT INDEMNIFIED.
Steps to Troubleshoot
- Verify Account Details
- Ensure that the Bank Account Number and ABA Routing Number in the Payment Request match exactly with the information verified during the New Vendor Registration process.
- Reach Out to PaymentWorks Support
- If the Bank Verification Status is Review Complete and still shows as NOT INDEMNIFIED, contact PaymentWorks Support to investigate further.
Submitting a Ticket to PaymentWorks Support
When filing a ticket, be sure to include the following details to expedite resolution:
- A Screenshot: Provide a screenshot that shows the full line of the payment, including Payee Name, Amount, and the Warranty Status.
- Vendor Request ID: Include the Request ID associated with the vendor.
- Description of Steps Taken: Provide a complete description of the actions you’ve taken to verify the information and any specific questions you need addressed.
These steps will help ensure a prompt and thorough resolution to your issue.
If you have questions or need any more help, feel free to reach out to PaymentWorks Support