What happens when an ACH payment is "Rejected"?Support Home
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. Most likely the scenario. This happens if the customer's bank successfully funds the ACH payment.
- "Rejects" the payment. Just 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 that have the setting "Receive failed customer payment emails" turned on will receive an email notification 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 click here to manage your admins users.
- The customer whose payment failed will receive an email notification as well. They will be instructed to login to their account and update their payment credentials and try the payment again.
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 fees that your bank imposes on you when a bounced check (in this case an electronic check) happens. You can check with CardConnect to see what your ACH payment NSF fee is.
Where in the app can I see report of rejected ACH payments?
- From the A/R Aging Report (MENU -> Reports -> A/R AGING), you will see an icon next to the account holder's name if there was 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 that there was a recently rejected payment on the account and that their Auto-Pay setting was automatically turned off to protect your merchant account from repeated bounced check fees.