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When an ACH payment (an eCheck) is posted, it gets put in a "Pending" status until the Customer's bank funds it. Their bank can make one of two decisions:
"Settle" the payment. That is most likely the scenario. This happens if the c\Customer's bank successfully funds the ACH payment. Depending on the bank, this usually takes between 3 to 5 business days.
"Rejects" the payment. Like a paper check, an eCheck can bounce or get rejected by the Customer's bank.
Let's go into detail about how Enrollsy handles rejected ACH payments.
All admin users who have the setting "Receive failed customer payment emails" turned on will receive email notifications of rejected ACH payments. If you have access to manage admin users, you can change this setting by going to My Company -> Users -> Admins or clicking here to manage your admins' users.
The Customer whose payment failed will receive an email notification as well. They will be instructed to log in to their account, update their payment credentials, and try the payment again. Below is an example of a Customer email notification:
NSF (Non-Sufficient Funds) Fee
You can set up an "NSF Fee" so that Enrollsy will automatically charge it to the Customer's account balance in the event of a rejected ACH payment. Click here to go to your "ITEMS" page to edit the price of your "NSF Fee."
The purpose of this automatic fee is to help cover any costs your bank imposes on you when a bounced check (in this case, an electronic check) happens. You can check with CardConnect to see your ACH payment NSF fee.
Using EnrollsyPay, you will be charged a $2.50 fee for each NSF transaction. Keep this and all other factors in mind as you determine the right amount to charge your Customers for NSF transactions. You can, of course, edit/delete the fees you pass through to your Customers on a case-by-case basis, but you will always be charged.
Rejected ACH Payments Report
From the A/R Aging Report (MENU -> Reports -> A/R AGING), you will see an icon next to the account holder's name if a rejected ACH payment within the last 90 days.
Within an Account's BILLING tab, you will see a warning box (see screenshot below) explaining a recently rejected payment on the account. When a rejected ACH payment occurs, their Auto-Pay setting is automatically turned off to protect your merchant account from repeated bounced check fees.
Under Transaction History (on the Billing tab), you will see the transaction and any insufficient fund fees you charge:
ACH Return Codes
ACH returns are a normal part of ACH processing and allow receivers to notify originators when a transaction does not go as intended. A three-character alphanumeric return code indicates these.
Our ACH processor is ACHQ. Click here to see a list of all ACH Return Codes.