There is absolutely no doubt that the payment processor should have caught this way earlier. It is in their best interest. That said I am not sure how Balanced

There is absolutely no doubt that the payment processor should have caught this way earlier. It is in their best interest. That said I am not sure how BalancedPayments is built. By that I mean how much risk they are taking in being part of this payment ecosystem. It looks like they hold the money in their own bank account so BalancedPayments themselves uses another processor to do their payment processing. The other alternative is that they are big enough to communicate directly with the backend network like IPPay, First Data Omaha, or FNBO...but they don't seem that large.