Returned Check, NSF, Failed Payment

The Rentec Direct software is a full accounting platform that allows you to track what occurs in real-world banking transactions such as finding out a check was returned for insufficient funds, payment failure, and returned or canceled checks.

If the tenant made an online payment via ACH:

Online payments made over the ACH network through Rentec Direct will automatically update the tenant's ledger if they are returned for any reason, including NSF.  The default setting will post a debit entry to offset the ACH payment on the date we receive notification of a failure.

Note:  If you set up your merchant account prior to June 2020 your returned ACH setting will be set on a legacy mode which will zero out the original payment instead of posting a debit entry to offset it. To change this behavior and switch to the current default follow these steps. 

In your Rentec Direct account:

  1. Click Settings.
  2. Choose Program Defaults.
  3. At the bottom of the page click Advanced Settings.
  4. Change the setting labeled 'Set returned tenant ACH transactions to zero?' to No.
  5. Click Save Changes

If the tenant paid by paper check:

It is important to document an NSF transaction, canceled or returned check in the system correctly to be sure your income categories (and reports) are accurate.  

In your Rentec Direct account:

  1. Open the ledger where the payment was made.
  2. Locate the transaction that failed and make note of the transaction date & check number
  3. While in the ledger, click the Green dollar sign to Post Payment.
  4. Enter in a NEGATIVE payment amount that reflects the original payment and use the original check number.
    NSF returned check
  5. Add in a description in the Memo line. For example, 'NSF (payment date)' or 'Payment Failed (payment date)'.
  6. Select the Bank Account that these funds were deposited into, if applicable.
  7. Click Post Income to save. 

System Notes

  • You may also want to post additional ledger entries for late fees and/or  NSF fees at this time. 
  • If you have automatic management fees set up on the property, you will also want to remove the management fee from the property ledger after posting this transaction.
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