Some USCIS Rejections Prompted by Payment Security Features

As the second round of the FY2025 cap lottery begins, it is important to note one avoidable reason for an H1B petition – or really, any type of petition or application – to be rejected by the U.S. Citizenship and Immigration Services (USCIS) is for lack of proper payment. The USCIS may reject any case submitted without all required filing fees. Yet, even if the applicant or petitioner submits the correct filing fees, there are situations in which anti-fraud features on the method of payment may result in the bank’s denial of payment to the USCIS, thereby resulting in USCIS rejection of the filing. A rejected filing can lead to catastrophic immigration problems. It therefore is important to be mindful of these potential pitfalls and to take proactive steps to avoid them.

Rejection Versus Denial

A rejected filing is different from a denial. A filing that is rejected is one that does not meet the minimum requirements for the USCIS to accept it. For instance, if a petition or an application is filed using an outdated version of the form, or without the required filing fees, the package will be rejected and returned to the applicant. The case essentially is treated as if it was never filed. A denial, on the other hand, is where the case has been receipted, reviewed by a USCIS officer, and denied for a substantive reason.

Credit Card Payments Rejected

In the years since the USCIS began accepting credit card payment by mail, there sporadically have been issues with payments rejected by banks due to suspected fraudulent charges. Due to a variety of factors, charges for government filing fees may get flagged for suspected fraudulent activity by the bank, and if the USCIS cannot successfully process the payment the case normally will be rejected.

Fortunately, there is a solution. Whenever Murthy Law Firm clients opt to pay government filing fees by credit card, we strongly urge them to contact their respective credit card companies prior to filing, to notify these institutions of the upcoming payments that will be made to the U.S. Department of Homeland Security. This precaution tends to dramatically reduce the risk of such transactions being flagged as potential fraud.

Checks with “Positive Pay”

Positive Pay is an application that banks use to catch check fraud before the checks can be cashed. Account holders (people and companies enrolled in this program) provide their banks with a list of issued checks. Then, if the bank finds that someone is attempting to cash a check from the enrolled account, and the check does not match the list provided by the account holder, the bank will flag the check for approval. Until the account holder approves the flagged check, the bank will withhold payment.

Use of Positive Pay Checks in Immigration Context

In theory, the payment of filing fees with checks that have the Positive Pay security feature should not result in rejection of a case, but the anti-fraud measures used by banks have the potential to result in unexpected problems. For instance, upon receiving a filing fee check, the USCIS typically places a stamp on the check. If the stamp obscures some vital piece of information on the check, which has been known to occur, the check will not match the precise information that had been provided to the bank by the check writer. The bank, in turn, will flag the check for suspected fraud and require the check writer to confirm the legitimacy of the check. If the individual or employer that issued the check fails to respond promptly, the check will be declined, and the filing likely will be rejected by the USCIS for lack of proper payment.

Conclusion

Security features are an important tool to help fight more and more sophisticated attempts at fraud. In the immigration context, however, this can be a double-edged sword, as these security features also add to the hurdles that legitimate forms of payment must overcome. Stakeholders should plan ahead and diligently work to ensure their cases are properly filed and receipted.

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