How does the MCA funder payment restart process work after a hold or modification in 2026?

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Payment restart overview 2026. Payment restart is the formal process to resume ACH debits after a hold, modification, or pause. Restart differs from initial onboarding (faster, less documentation) and from contract revival (which requires full re-underwriting). Major funders (Credibly, OnDeck, Greenbox, Forward Financing, Kapitus, Rapid Finance) have documented restart procedures. Proper restart preserves merchant standing and renewal eligibility; failed restart often escalates to default.

Restart trigger events 2026. (a) Federal holiday automatic resume — next business day, no action needed. (b) FEMA disaster hold end — automatic resume after hold period unless extended. (c) Modification completion — restart with new payment terms. (d) Bank account change — restart with new account. (e) Dispute resolution — restart after dispute closed. (f) Fraud investigation closure — restart after investigation cleared. (g) Negotiation conclusion — restart with agreed terms.

Bank account reverification 2026. (a) Plaid reconnection if read-only login used previously. (b) New voided check if account changed. (c) Live verification via micro-deposits sometimes (1-2 business day delay). (d) Account ownership match with PG signer reconfirmed. (e) Account in business name (not personal). (f) Account active and good standing. (g) Bank verification typical same-day if Plaid, 1-2 days if micro-deposits.

ACH reauthorization 2026. (a) Written authorization required per NACHA rules. (b) DocuSign or HelloSign delivery typical. (c) Daily payment amount confirmed. (d) Payment frequency (daily/weekly) confirmed. (e) Restart date confirmed. (f) Modified terms documented if applicable. (g) Same NACHA rules as original authorization.

Payment schedule reconfirmation 2026. (a) New first payment date communicated. (b) Updated payback period if modified. (c) Updated total payback amount if modified. (d) Updated daily payment if modified. (e) Renewal eligibility timeline. (f) Prepayment discount terms if applicable.

Restart fees 2026. (a) Federal holiday and FEMA disaster restart — no fee typical. (b) Modification restart — fee may be included in modification fee. (c) Bank account change restart — $0-$250 typical. (d) Dispute restart — no fee typical. (e) Fraud investigation restart — no fee typical. (f) Negotiation restart — depends on agreement terms.

Restart timeline 2026. (a) Automatic restart (federal holiday, FEMA disaster end) — next business day. (b) Bank account change restart — 2-5 business days. (c) Modification restart — 1-3 business days. (d) Dispute restart — 1-2 business days post-resolution. (e) Fraud investigation restart — variable, depends on investigation length. (f) Negotiation restart — per agreement.

Restart approval workflow 2026. (a) Merchant submits restart request via portal or phone. (b) Or restart triggered automatically by event end. (c) Bank verification step. (d) ACH reauthorization step. (e) Underwriter sign-off. (f) System schedules first restart payment. (g) Email/SMS confirmation to merchant.

Failed restart causes 2026. (a) Bank account reverification failure (10-20% of holds). (b) Merchant unresponsive during reauthorization window. (c) New bank account in wrong name. (d) NSF on first restart attempt. (e) Plaid disconnect not resolved. (f) Merchant attempts to renegotiate at restart (terms locked).

Failed restart consequences 2026. (a) Default flag triggered after 3-7 days of failed restart. (b) Collections workflow begins. (c) Acceleration clause may trigger. (d) COJ filing where legal. (e) Cross-collateralization enforcement. (f) Renewal eligibility lost.

Restart vs initial onboarding differences 2026. (a) Initial onboarding requires full identity verification, business verification, compliance disclosures. (b) Restart requires bank reverification and ACH reauthorization only. (c) Restart faster than initial onboarding (1-5 days vs 24-72 hours). (d) Restart preserves original contract terms unless modified.

Multi-advance restart coordination 2026. (a) Merchant with multiple advances same funder — coordinated restart possible. (b) Cross-collateralization clause may require coordinated restart. (c) Multiple-funder situation — independent restarts per funder. (d) ISO may coordinate timing across funders.

Industry-specific restart timing 2026. (a) Restaurant — restart aligned with restaurant week or weekend cash flow. (b) Construction — restart aligned with project payment schedule. (c) Retail — restart after Q1 (avoid post-holiday slow). (d) Healthcare — restart aligned with insurance reimbursement cycle. (e) Tourism — restart after off-season.

Restart documentation 2026. (a) Restart agreement signed. (b) Updated ACH authorization signed. (c) Updated payment schedule acknowledged. (d) Modification agreement if applicable. (e) Documentation stored typical 5-7 years per funder retention policy.

ISO role in restart 2026. (a) ISO may facilitate restart on merchant's behalf. (b) ISO knowledge of restart timing valuable. (c) ISO sees restart status in portal. (d) ISO may receive failure notifications. (e) ISO earns no additional commission on restart. (f) Long-term ISO-merchant relationship benefits from successful restart vs failed.

Bottom line. MCA funder payment restart in 2026 is the formal process to resume ACH debits after a hold (federal holiday, FEMA disaster, modification, bank change, dispute, fraud investigation, negotiation), distinct from initial onboarding (faster, less documentation) and contract revival (requires re-underwriting). Standard restart steps — bank account reverification (Plaid reconnection or new voided check, live verification via micro-deposits if needed, account ownership match with PG signer, business account verification, typical same-day to 2 days), ACH reauthorization per NACHA rules (DocuSign typical, daily payment amount, frequency, restart date, modified terms documented), payment schedule reconfirmation (new first payment date, updated payback period, total payback, daily payment, renewal eligibility, prepayment discount), and underwriter sign-off. Fees — federal holiday/FEMA $0, modification included in modification fee, bank change $0-$250, dispute $0, fraud $0, negotiation per agreement. Timeline — automatic restarts next business day, bank change 2-5 business days, modification 1-3 days, dispute 1-2 days post-resolution, fraud variable. Failed restarts (10-20% of holds) cause — bank reverification failure, merchant unresponsive during reauthorization, account in wrong name, NSF on first restart attempt, Plaid disconnect, attempts to renegotiate at restart. Failed restart triggers default flag after 3-7 days, collections workflow, acceleration clause, COJ filing where legal, cross-collateralization enforcement, renewal eligibility loss. Multi-advance same-funder coordinated restart possible; multi-funder requires independent per-funder restart. Major funders (Credibly, OnDeck, Greenbox, Forward Financing, Kapitus, Rapid Finance) have documented procedures. ISO facilitates restart, sees status in portal, no additional commission, long-term relationship benefits from success.

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