Returned/Rejected Payments |
  
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Navigation: Loans > Loan Screens > Transactions Screen Group > EZPay Screen > Using the EZPay Screen > Step 4: Submitting the Payment >
Returned/Rejected Payments |
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This help page provides information about reports and institution options pertaining to ACH payments that were denied when a payment submission was attempted in EZPay. See the E-Checks topic for more information on how to set up payments using ACH. See Declined Cards for information about how to deal with card payments that are denied by the system.
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Note: If an ACH payment return is received with a return code other than R01 or R09 and Institution Option ACFR is set, the system will automatically charge off the loan as well as stop all future one-time and recurring payments on the account. |
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How the system handles ACH payment returns differs from institution to institution. ACH payments are returned for various reasons, including insufficient funds in the deposit account to cover the loan payment (non-sufficient funds), a closed account, or invalid bank number.
•Some institutions receive a transmission or report from the bank they do business with that shows which ACH payments were returned for which reasons. Then it is up to the institution to decide how to handle the account. They can reach out to the customer to ask for a different form of payment; run the NSF Payment Reversal transaction (tran code 2608-01) to reverse the payment and charge a fee for the non-sufficient funds; or they can use any other CIM GOLDTeller payment reversal transaction, as described in the NSF field group on the Account Detail screen.
•The Afterhours Processing Exceptions Listing (FPSRP013) is an important report to view what payments were rejected in afterhours processing. This is not the same as a payment that has been returned from the bank or FRB due to insufficient funds. This report lists payments that were immediately rejected in afterhours of the payment effective date due to an account not existing, a payment on a matured account (when the option isn't set to allow payments on matured accounts), and a payment amount that would pay off the loan when the option isn't set to allow recurring payments to pay off the loan. From that report, institutions can decide how to handle each account.
•GOLDPoint Systems' GOLD ExceptionManager application is a useful tool to return payments to the depository institution. If you do not use GOLD ExceptionManager, you can still receive the Exception Item Report that lists all accounts that have had returned payments. See FPSDR096, Exception Items Report, in the Deposit Reports manual in DocsOnWeb.
•GOLDPoint Systems can automatically reroute rejected ACH payments to the depository institution, and then reverse those payments from loans. The Loans > Reports > ACH Returned Payments screen is then used to track which payments were reversed and why. If institutions want to charge a fee due to insufficient funds, they would need to manually set up Miscellaneous Fee Code 9 (NSF) using the <Assess Fee> button on the Loans > Marketing and Collections screen. See the Miscellaneous Fees topic on the Marketing and Collections screen for more information.
If your institution would like to set up options with GOLDPoint Systems to automatically return ACH payments that are rejected, contact your GOLDPoint Systems account manager.
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GOLDPoint Systems Only: Setting up institutions to automatically handle returned ACH payments requires the following programming setup:
1.The Transmission Team must set up the system to pick up the file sent by the institution's bank or directly from the Automated Clearinghouse (FRB) and put it into DACOSYS. 2.The JCL for lockbox must be set up for the appropriate nodes for the institution. 3.FPSIPSTL must include the institution's name and number. 4.FPSNACHI must be running for the institution. 5.Institution option RIDS (Run Immediate DACOSYS) must be set to "Y." 6.Institution option SSAT (Does Institution Skip Saturday Afterhours?) must be set to "N."
The ACH Returned Payments screen will display the FPUP (ACH Returns) record. |
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Open the toggles below to see more information about rejected/returned ACH payments.
A payment can be rejected in the afterhours for many reasons. This is different from being rejected through the ACH system due to non-sufficient funds (which is explained below in What if a recurring payment is returned from the Federal Reserve due to non-sufficient funds or other reasons?). This is our system rejecting the payment during the afterhours run. Examples of rejecting in the afterhours includes:
•The account has reached maturity, and the option to allow payments past maturity is not set. •The recurring payment is enough to pay off the loan, and the option to allow recurring payments to pay off a loan is not set.
If the payment is rejected in the afterhours by the system, the payment will be placed in the exceptions file and shown on the Afterhours Processing Exceptions Listing Report (FPSRP013).
IMPORTANT: The system will continue to attempt to make the payment each subsequent afterhours unless the recurring payment is discontinued. Discontinuing recurring payments can be performed on the EZPay screen (<Discontinue Recurring Payment> button).
Each institution should have daily monitoring of the Afterhours Processing Exceptions Listing (FPSRP013). Monitoring the exceptions list will help reduce the amount of processing errors. See the Afterhours Processing Exceptions Listing Report documentation in DocsOnWeb for more information on this report and reasons why payments are rejected by the system. |
If a recurring payment is returned from the Federal Reserve/bank due to non-sufficient funds or another reason (such as closed or non-existent account), your institution’s practices should be followed. You will need to reverse the payment in CIM GOLDTeller. CIM GOLDTeller offers several reversal transactions:
•NSF-Payment Reversal (includes a fee) (tran code 2608-01) •NSF-Payment Reversal No Fee (tran code 2608-02)
Or you can reverse the payment through the Loans > Transactions > Payment Adjustment screen.
Follow your institution’s policies on what should take place on the account in the event of a non-sufficient funds return, such as discontinuing the recurring ACH payment, contacting the borrower about placing a one-time automatic payment, charging a fee for the non-sufficient fund, or waiting until another NSF is returned before taking action.
If the recurring payment is not discontinued, the system will pull the next recurring ACH payment on the next effective date. The recurring payment that occurs on the next date will go towards paying the previous payment amount. If a full payment amount is not met by the time the system assesses late charges, a late charge may be assessed to the account (if your institution applies late charges). The account may also be reported as late to the credit repositories if your institution uses the Credit Reporting transmission and Report (FPSRP184). Whether or not a loan is delinquent is based on if your institution uses delinquency grading and how late the loan is when the Credit Report is run.
See these topics in DocsOnWeb for more information:
•Special Delinquency Calculations for Consumer Loans •Credit Report and Transmission (FPSRP184)
Also see the Afterhours Processing Exceptions Listing (FPSRP013) for a report that is generated nightly showing accounts where payments were rejected by GOLDPoint Systems for various reasons. These are different from returns sent by the Federal Reserve/bank.
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