Involuntary Terminations

💡 This article focuses on involuntary terminations, or when the company termination is initiated by Check. For more information on how to terminate a company who has elected to be terminated, please see our Help Center article here.

Involuntary terminations are terminations initiated by Check. These are initiated when a company is in breach of Check’s contract. Below we will document the most common cases for involuntary termination, why they occur, and what options you may have to appeal our decision.

This occurs when a company has failed funding for a payroll and has not rectified the funding failure, either by paying Check any due funds or by voiding the payroll. This will occur anytime after 90 days post the most recent debit was attempted to fund the payroll.

To limit our potential for future financial losses, there is no option to appeal this decision.

This occurs when a company has accumulated 6 failed funding strikes without meeting the graduation criteria, as specified in our Graduation and Downgrade & Exit policy. Please find more information on that policy here.

There is no option to appeal this decision. Check must limit repeated failed fundings in order avoid the negative impact that they can have on other Check companies on the platform.

Check routinely monitors for potential fraudulent activity. Involuntary termination for fraud or compliance reasons occurs when a company is suspected or confirmed to be engaging in fraudulent or compliance-breaking behavior based on our monitoring.

You may appeal a fraud or compliance termination via our Secondary Review. Please find more information on what Secondary Review is here.

If an employer is denied for fraud risk while a payroll is in progress, Check may be in possession of funds that were already debited but cannot be used to process payroll.

To ensure funds are returned safely and in compliance with banking regulations, the employer must work with their bank to initiate a debit authorization. This process, similar to a chargeback, ensures the originating bank performs the necessary due diligence before the funds are returned.

Once the standard reversal window has passed, and up to 365 days after the original debit date, Check can only return funds for denied employers in response to a valid debit authorization from the bank.

If a debit authorization has not been received within 365 days, Check will proceed to refund the funds to the original bank account on file.