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:
- Click Settings.
- In Program Settings choose Program Defaults.
- At the bottom of the page click Edit Advanced Settings and OK.
- Under Payment Options, change the setting labeled 'Set returned tenant ACH transactions to zero?' to No.
- 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:
- Open the ledger where the payment was made.
- Locate the transaction that failed and make note of the transaction date & check number
- While in the ledger, click the green Post Income button to Post Payment.
- Enter in a NEGATIVE payment amount that reflects the original payment and use the original check number.
- Add in a description in the Memo line. For example, 'NSF (payment date)' or 'Payment Failed (payment date)'.
- Select the Bank Account that these funds were deposited into, if applicable.
- 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.