Help CenterWith RECUR360Pay we can determine the funding status of an ACH or Credit Card transaction after it has been processed. Typically for ACH transactions it takes up to 7-10 days for the transaction to finish processing. Anytime prior to that it could come back with an error status (Example: Insufficient Funds; Unable to locate account). When this happens the money is removed from your bank account and the status changes to ACH Returned.
Recur360 can automatically take one of these actions when this happens.
The NSF Invoice process allows the original payment to remain in your QuickBooks, since it was most likely deposited in your bank account. QuickBooks will not allow a payment that is marked as deposited to be voided. The NSF invoice process moves the original (bounced) payment to a separate NSF invoice, this reinstates the balance due on the original invoice. It can also add a processing fee to the invoice to charge your customer for the bounce fee.
To set this up you will need 2 new parts in your QuickBooks Item list: an NSF returned item
and an NSF fee item.
Note: The NSF Return item should NOT be linked to a Sales income account - this item will be used to invoice for the return and should be linked to an other current asset GL account (above you see it is linked to an NSF Clearing Account). This way you can track the balance in the NSF Clearing account and zero the GL account back out when you record the payment being deducted from your bank deposit.
If you just created these items in QuickBooks you will need to Sync Data in Recur360 so they will be available to select.
In Recur360 under Settings - Payment Processors open the dropdown in below When a payment is found to be Charged Back/Returned and select Create ACH NSF/Chargeback NSF Invoice
In the Returned Check Item dropdown search for your NSF Invoice Item
You can also create a separate NSF Payment Term in QuickBooks. If this payment term is set as the default for the NSF invoice you can then hide NSF type invoices from your customers seeing them in their pay online link. Since these NSF invoices are purely for accounting purposes and not sales related you might want your customers to not see them.
By default all invoices show to customers in their pay online link, including NSF invoices. NSF invoices to have a colored badge in front of the invoice number showing the customer it is a special invoice
If you set the NSF term to something specific then in the Settings - Email screen you can limit what invoices a customer sees. If you select all other payment terms & leave the NSF term out then those types of invoices will not show on the customer pay online page.
Next choose which line item will be used on the NSF invoice.
As noted above this item in QuickBooks should be linked to an other current asset GL account, not an income account.
You can modify the text of the email that will be sent to customers if you have selected for the system to email.
Last option is to add a processing fee for the bounce/chargeback. Choose the item that Recur360 will add to the invoice, you can set it to either charge a flat fee or a percent. If you choose percent it will calculate the percentage of the invoice total that triggered the bounce/chargeback.
If you choose to send emails to your customer we recommend that you enable the setting to show the failure reason (like R01 - Insufficient Funds)
You can also have Recur360 automatically make changes to how the customers pay online link works and remove the affected payment method.
The first checkbox will change the customers pay online link to only allow them to pay with Credit Card if their ACH fails. When that customer clicks the pay online link and selects either Update Payment Information or Continue to Payment they will not see ACH as a choice in the Payment Method dropdown.
The other 2 checkboxes will unlink te affected payment method from any recurring invoices/payments. This will cause the customer to get an email the next time the recurring invoice/payment processes so they can update the information. The payment method will still be stored in the customer and can be used or re-linked to the recurring invoice by editing the recurring invoice and choosing it
or selecting the "Apply to All" button under the payment method in the Customer edit screen.
How it works
Once the settings are configured Recur360 checks the status of ACH payments nightly, you can also have it manually check if you press Sync RECUR360PAY in the left side blue panel.
The RECUR360PAY Transaction Sync History report will show you the details of the most recent sync results.
When a payment is first processed it will show Status "Batched". If the ACH does not successfully settle the Status will change to "Ach Returned". When this happens then the NSF automation takes over. It creates a new invoice using the NSF item for the amount of the return. The returned payment (from the original invoice) gets moved to this new NSF invoice. The description of the item shows which invoice caused the return. The balance due of this invoice will be zero.
This re-instates the full balance due on the original invoice. If you selected to add a fee that will be added to the original invoice.
Note: if the payment is returned in a different calendar month than the original invoice a new invoice for the fee will be created. This is so we do not modify a transaction from a previous month (possibly affecting sales for a closed period).
You can watch a video about the setup and operation here: