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 can take up to 7-10 business days for the transaction to finish processing. Any time 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.
Credit card transactions that are disputed will result in a chargeback and typically do not occur after 180 days.
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 deposited in your bank account.
Once a payment is marked as deposited in QuickBooks, it will no longer allow you to void it.
The NSF invoice process moves the original (bounced) payment to a separate NSF invoice. This reinstates the balance due to the original invoice. It can also add a processing fee to the invoice to charge your customer for the bounce fee.
If you do not have an NSF clearing account set up, you will want to start there. In QuickBooks Desktop click Lists- Chart of accounts.
Click the arrow next to 'Account' in the bottom left and select 'New' at the top of the menu.
Click the radial next to Bank, then select continue.
Put in the account name and make sure the account type says 'Bank'. Then select save and close.
To finish setting this up you will need 2 new parts in your QuickBooks Item list:
Click Lists- Item lists
Click the arrow next to 'Item' at the bottom left of the screen.
- In QuickBooks the first product/service is an NSF Invoice item. Make sure to check the 'Type' then enter a name for the item. Also make sure the account at the bottom is the clearing account created. Click 'OK' to save.
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 a "Bank" type 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 Recur360 records the payment being deducted from your bank deposit.
- In QuickBooks the second product/service item is the NSF fee.
If you just created these items in QuickBooks, you will need to Sync Data in Recur360 so they will be available to select. Run the Web Connector to sync the data.
In Recur360 under Settings - Payment Processors -Void, Chargeback, and ACH return actions open the dropdown, 'When a payment is found to be Charged Back/Returned' select Create ACH NSF/Chargeback NSF Invoice. You can also set the options for voided payments in this section as well.
You can also have Recur360 automatically make changes to how the customers pay online link works and remove the affected payment method in Settings-Payment Processors.
The first checkbox will change the pay online link to only allow them to pay with Credit Card ONLY 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 the 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.
In the Returned Check Item, Card Chargeback item, Refunded check item, and Card refund item, dropdown search for your NSF Invoice Item.
Next in Settings- Payment Processors, you can modify the text of the email that will be sent to customers if the option is selected to email the customer.
The last option is to add an NSF/Return 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 the percent option, it will calculate the percentage of the invoice total that triggered the bounce/chargeback.
Remember to select the NSF-Fee item you created here too.
If you choose to send emails to your customers, we recommend that you enable the setting to show the failure reason (like R01 - Insufficient Funds) In Settings- Email Settings Invoice Settings towards the bottom of the section.
If you would like to limit what your customers can see in the pay online link, you can also create a separate NSF Payment Term in QuickBooks.
Since these NSF invoices are purely for accounting purposes and not sales related, you might not want your customers to see them in the pay online link.
Set a term that is specific for NSF/ Refund Invoices. This will be important for the next step.
By default, all invoices will show to customers in the pay online link, including NSF invoices. NSF invoices do have a colored badge in front of the invoice number showing the customer it is a special invoice
This is how the default settings will look in the online pay link:
To successfully limit what your customers will see in the pay online link,
Go to Settings- Email Settings
If you set the NSF term to something specific, you can limit what invoices a customer sees. If you select all other payment terms & leave the specific NSF term out then those types of invoices will not show on the customer pay online page.
Remember not to select the term you set in the Payment Processors section.
In our Settings - Notifications area you can enable the option to recieve an email when an ACH Return or Chargeback happens:
If you would like to set up automated deposits as well, visit our Automated Deposits article.
For more information on refunds visit our Recur360Pay Refunds article.