Bounced / Failed Checks, eChecks & Credit Cards

Reverse a Payment – Mistakes only!

Use the Reverse a Payment button only when you have entered incorrect data in a manually entered payment.

Never Reverse a BillPay Payment!

All payments Retrieved from BillPay may not be reversed, as they remain in the web database forever. They must be handled with using one of the procedures below.

Failed ACH / ECheck / Credit Card Procedures

1. This is for is for a situation where ach or credit card charges did not ever reach your bank. This can happen due to incorrect account numbers or expiration dates entered, or when you void a transaction in Diamond Mind.
2. We cannot delete the record so we have this procedure to “take care of it” in the accounting system.
3. Create a Failed Check GL or use a Reconciliation / Clearing GL account and click the “isDepositable” checkbox. This account will eventually zero out with no affects to the income, AR or deposit accounts.
4. Create a fee called Failed Checks. The Failed Check fee points to the Failed Check GL you just created. Set the fee to $1.
5. Charge the student the Failed Check fee, entering the amount that failed in the Review and Invoice Charges window.
6. Create the Invoice containing the Failed Check fee.
7. Unallocate the Payment from the original Invoice that was paid by the failed check.
8. Allocate the “Failed Check” payment to the new Invoice that has the Failed Check fee on it. This Invoice will now be Paid.
9. The original Invoice will become unpaid due to removing the allocations, and will contain the balance due.
10. Go into the Main View of the Failed Payment and click Do Not Publish checkbox.
11. Go to Related Invoices in Invoices.
12. Identify the Invoice with the Failed Check fee. Go into the Main View and click Do Not Publish checkbox.
13. Extend your found set on the name.
14. Click Generate PDFs for the Found Set.
15. Click Go to Related Accounts in BillPay.
16. Delete the time in the time field for the family so all Payments show as needing to be published. 
17. Publish all for this familiy.
18. The original Invoice will be paid when the new payment is received.
19. Deposit the Failed Payment to your “Failed Check GL account.”
20. Batch your Failed Check Invoice.
21. When you post both the Deposit and the Batch, the Failed Check GL will be 0.

Returned ACH / ECheck / Credit Card  Procedures

1. This is for an ach that actually was returned NSF.
2. Create a fee called Returned Check. The Returned Check fee points to the bank GL from which it failed. Set it to $1.
3. Charge the student the Returned Check fee, entering the amount that failed.
4. Create the Invoice containing the Returned Check fee.
5. Unallocate the Payment from the original Invoice that was paid by the returned check.
6. Allocate the “Returned Check” payment to the new Invoice that has the Returned Check fee on it. This Invoice will now be Paid.
7. The original Invoice will become unpaid due to removing the allocations, and will contain the balance due.
8. Go to Related Invoices in Invoices. Extend your found set on the name.
9. Click Generate PDFs for the Found Set.
10. Click Go to Related Accounts in BillPay.
11. Publish all for this familiy.
12. The original Invoice will be paid when the new payment is received.

Bounced Check, Echeck & Credit Card Procedures with Penalty Charges

1. Create two fees to take care of Bounced Checks.
   1. The first Fee, “Bounced Check fee” is the fee for the amount of the bounced check, and it should point to the bank GL from which it bounced. Set it to $1.
   2. The second fee, “Returned Check Penalty” is the fee for the amount of the penalty you charge for returned checks. This fee points to a Revenue GL code, if you recognize this as revenue, or your Bank Fees GL codes if you wish this to reduce your Bank Fees.
2. Charge the student the Bounced Check fee, entering the amount that bounced and the Returned Check Penalty fee.
3. Create the Invoice containing the Bounced Check fee and the Returned Check Penalty fee charges.
4. Unallocate the Payment from the original Invoice that was paid by the bounced check.
5. Allocate the bounced check payment to the new Invoice that has the Bounced Check fee on it. This Invoice will now have a balance of only the Returned Check Penalty fee amount.
6. The original Invoice will become unpaid due to removing the allocations, and will contain the original balance due, allowing the family to pay it again. The second Invoice will contain the Bounced Check Fee and the Returned Check Penalty fees.
7. Publish both to BillPay.
8. The original Invoice will be paid when the new payment is received.

Credits ›