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Returned Checks, Payment Denials and Chargebacks-3537

Estimated Reading Time: 8 Minutes
305   February 15, 2024  reference 0

Introduction

  • A Payment Denial occurs when a payment is declined or does not go through

      • The payment is reversed and a payment denial fee is charged
  • A chargeback occurs when a customer makes a credit card payment and disputes the payment with their credit card company, who then revokes authorization of the payment:

      • The chargeback reverses the payment transaction
  • When a payment is returned, customers cannot pay with the same MOP and are not eligible for a payment arrangement

      • A MOP Restriction may be placed on an account due to payment returns or chargebacks

      • If a payment is made to stop suspension or restore service, and the payment is returned, the account is placed in an accelerated collections scheme or may be suspended
  • When a lockbox payment is returned to a customer as Undeliverable from the Post Office:

      • Verify the customer used our remittance slip and envelope and added postage to the envelope

      • Follow instructions below to assist the customer

Resolution Steps

When a payment is made, we expect the funds to be available, if funds are not available; we attempt to take the payment up to three times
 
  • Only returned NSF checks are re-deposited
     
      • The 1st attempt is when the check is deposited to collect the funds

      • The 2nd attempt (redeposit) occurs one to four days after the 1st attempt
         
          • After the 1st attempt fails, a vendor, E-Cash Flow, attempts to collect the payment

          • If E-CashFlow collects the funds, they withdraw up to a $30 surcharge
             
              • Their fee for re-depositing the check
          • Even if we collect payment on the 2nd attempt, the company charges a redeposit fee
      • The 3rd attempt is one to four days after the 2nd attempt fails
         
          • If the 3rd attempt fails, only the company charges a denial fee to the customer’s bill

          • Note: a fee is not applied when a customer puts a stop payment on a check
      • When a check is returned, payment cannot be made with another check; must pay with a different payment method
  • To identify a returned payment
     
      • General Ledger shows NSF WITH CHARGE

    • See BOLT comments to determine if a returned check or ACH denial
       
        • Example in BOLT notes:

          CC RE: RETRN CK/LMM RTND CK#369 *LTR MLD 040115 *NDS 165.00+30.00FEE *SUSP 4/13

          CK WAS APPLD ON 2/28...NSF

  • All markets:

    Returned Payments - All checks returned due to non-sufficient funds will be resubmitted electronically. A maximum $30.00 administrative fee may be electronically debited. If at any time your check or automatic credit card payment is rejected or returned, [Brand] will consider this a denied payment. You will be charged a denied payment fee, in addition to any late fees incurred as a result of the denied payment and all other amounts owed to [Brand].

  • Returned ACH electronic check payments are reversed to the account the day they are received
     
    • An ACH or direct debit/electronic check is re-deposited in the following manner
       
        • The 1st attempt to collect the funds when the payment is received

      • The 2nd attempt, or redeposit is made by a vendor, Paymentech, one to four days after 1st attempt fails
         
          • A return (redeposit) fee is charged to the account, regardless of the denial reason

          • Even if we collect payment on the 2nd attempt, the company charges a redeposit fee
    • The General Ledger displays Insufficient Funds Payment ; the returned payment does not display on the MOP/Payment History tab in BOLT
       
      • Refer to the notes found in BOLT.  Example: 
         
          • Direct Debit $154.56 040517 returned as R03-No-account/Account closed
            Cash / Western Union / Credit/Debit Check Card only / Money Order accepted for the return plus ALL past due charges. NO ARRANGEMENTS on the return. ALL returns are subject to an insufficient funds fee, regardless of the return reason. For further details, refer the customer to their bank/financial institution.
    • If the direct debit return leaves the account in current status or the returned payment removed the account from collections status, a letter is mailed to the customer detailing the return reason and steps for making an alternate payment
       
      • Non-Sufficient Funds message:
         
        • Non-Sufficient Funds: Payments returned due to non-sufficient funds will be resubmitted electronically. A maximum $30.00 administrative fee may be electroncially debited.
  • A chargeback appears on the ledger when a customer disputes a credit card payment and the payment is added back to the account
     
  • To identify a chargeback
     
    • In ICOMS, go to the Financial menu/AR Comments
       
        • Example: CB RSN 37 05/24/21
    • In BOLT, go to Summary tab to view the comments
       
        • Example: cc cb r830 52421 293.81 must make good on payment by any other method other than cc due to chargeback
  • Advise the customer of the balance due to bring the account current or to pay in full; provide dollar amount
     
      • We reversed the disputed payment in compliance with our obligation to the credit card company

      • When on auto pay, let customer know that auto pay was removed

      • Take a payment via a different MOP, as indicated in the BOLT notes
  • Credit card transactions from our company appear on credit card statements
     
    Site/Market Cardholder Description Phone Number Listed
    Astound Broadband Powered by RCN Astound Powered by RCN 800-746-4726
    Astound Broadband Powered by enTouch AstoundPwrd by EnTouch 281-225-1000
    Astound Broadband Powered by Grande Astound Pwrd by Grande 844-357-0942
    Astound Broadband Powered by Wave Astound Pwrd by Wave 866-928-3123
  • If customer says they did not dispute the payment, refer them to their financial institution, as we received the request directly from them
    • An auto pay credit card denial fee is charged to a customer's account when a credit card payment is denied

    • The fee posts on the account the day after the payment is denied; fees vary by site
        • Site 33: $10.00

        • Site 9: $20.00

        • Site 14, 22, 39, 48, 91, 92: $25.00

        • Site 44: $30.00
    • Customer is notified of the payment denial via email, if they have a preferred email address on the account

    • Emails are sent on the evening of the payment denial. This information also displays on the customer bill

  • See ICOMS / Financial / AR Comments to determine the number/reason:
     
      • 201: Invalid credit card number

      • 275: Ceiling Limit (transaction exceeds the limit)

      • 302: Credit Floor (insufficient funds)

      • 303: Processor Decline (generic decline no other info provided by issuer)

      • 502: Lost/Stolen. Resolve with customer. Card reported as lost/stolen.

      • 510: Over frequency limit (exceeds activity count limit)

      • 522: Card is expired

      • 530: Do not honor (generic decline-no further information provided by the issuer)

      • 571: Revocation of authorization - card holder requested all recurring/installment payments be stopped.

      • 591: Invalid credit card number

      • 594: Other error - unidentifiable error. Issuer generated

      • 606: Invalid Transaction Type (Possible Prepaid credit card we do not accept)

      • 754: Bank Account is closed

      • 755: No account/unable to locate

      • 763: Invalid account number

      • 825: No account - account does not exist

      • 758: Account frozen

      • 765: Customer advises not authorized

      • 772: Invalid Account Number-Questionable Entry

    • 806: Restraint - card has restriction for this type of transaction
    • Fees incurred for payment denials are valid; they are charged because the payment did not go through
       
        • Issuing credit is not typically encouraged
    • AutoPay Denial fee credit
       
      • When determining credit is warranted due to extenuating circumstances, verify credit was not issued for the same reason in the past six months:
         
          • If NO, negotiate the credit; attempt to credit less than the full amount of the charge

          • Enter an adjustment in BOLT
             
              • Note: Credit is issued from the Auto Pay Denial Resi line item on the ledger tab
          • If YES, let the customer know they received a recent credit and another one is not authorized
    • Insufficient Funds Fee Credit, route a Case
       
        • Attempt to negotiate the credit - this typically due to an escalated issue

      • Click Create Work Order or Technical Case
         
        • Fill out the information as described below and click Submit
           
          Record Type Non Technical
          Reason Financial, Payments & Refunds
          Reason Detail Payment Issue / Inquiry
          Case Reason Payment Issue / Inquiry
          Destination Queue Payment Processing
          Notes Any pertinent details

  • Case are completed in two days:
     
      • If approved the credit will be on their bill in one to two billing cycles

      • Payment Processing notes the account with the outcome of the credit request
  • May use above case type for payment denial questions not covered, be sure to enter customer email address in comments
    • When a customer uses our remittance slip with envelope and the payment is returned to them as Undeliverable
       
      • Verify there was postage placed on the envelope
         
          • If NO, the customer can re-send the bill with postage; provide other payment options if payment is nearing past due

          • If YES, provide other payment options and advise the customer to send a copy of the returned envelope to Cash.Escalated@Astound.com
    • Enter a Case for Payment Processing
       
        • Payment Processing researches the lockbox issue

      • Click Create Work Order or Technical Case
         
        • Fill out the information as described below and click Submit
           
          Record Type Non Technical
          Reason Financial, Payments & Refunds
          Reason Detail Payment Issue / Inquiry
          Case Reason Payment Issue / Inquiry
          Destination Queue Payment Processing
          Notes Undeliverable lockbox payment/daytime contact number

  • Case is completed when a response is received from lockbox
     
  • Payment Processing contacts the customer, notes and completes the Case
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Returned Checks, Payment Denials and Chargebacks-3537
Estimated Reading Time: 8 Minutes   February 15, 2024 0

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