In iClassPro, you have the option to enter payments with physical paper checks and ACH or NACHA files. Of course, the risk of using bank transfers and checks for payment is that sometimes the customer's account does not have sufficient funds or the bank returns the transaction for some other reason. This article will explain how to handle your actions in iClassPro to record the issue.
In general, we recommend using the VOID option for returned paper checks and ACH or NACHA payments.
Note: The instructions below are for paper checks and ACH/NACHA files only. For eCheck returns which are processed through your gateway- the best solution will be to delete the record of the payment in iClassPro.
Always follow up on check or ACH payments with your bank or financial institution.
Because iClassPro has no connection to your bank account, iClassPro cannot determine whether or not these transactions have been approved by both parties and completed. That means that once the payment is entered into iClassPro either by creating a check payment or by generating a NACHA file from the Autopay tasks, there is nothing iClassPro can do to track that payment's success.
Once you are notified, you will need to correct the family's ledger to mark the payment as refunded and reflect a balance.
Find the family from the Families page in iClassPro. Open the family's ledger and change to the payments view. Here, you will want to locate the payment and click the red Refund/Void button to the left of the charge. When presented with the option to refund or void the payment, choose VOID. As a result, this will set the charge back to showing as outstanding on the family account.
After voiding the payment, you may wish to edit the title to reflect that it was denied/returned by the bank and the reason (NSF, etc.).
If you charge a fee for failed check transactions or bank transfers, create the new charge.
While still in the family ledger, click the New Charge button and enter the information for the charge. For easy reporting, you may want to use a special financial or non-class Program and a specific charge category for these charges called 'Misc. Fee,' Returned Check or 'NSF'. This way, you can run a Charge Category List report to find all of these charges over a date range.
Make a note on the family's account to keep an easy record of the failed payment.
This can be a useful tool to track family failed payment history, particularly if you do not charge a fee to customers for these returned checks or ACH payments. If a particular family frequently pays with checks which are then returned, you may want to discuss switching them to another form of payment.