Banks do not process payments on bank holidays, which can delay the confirmation of payment success or failure by several days. To increase efficiency, LMS and Secure Payments allow you to automatically reschedule payments to an available banking day. While both tools default to U.S. banking holidays, you have the flexibility to customize holidays  according to your specific needs.

You can either create a custom schedule via LMS company settings or through batch processing settings in Secure Payments. Configuration through company settings will allow you to apply the custom schedule when a loan is calculated ,while NACHA processor dates determine when batch processing occurs. Typically, if your payment schedules are set to not land on holidays, the setting dates in your Nacha processor would be redundant. But if you use AutoPays that don't align with the amortization schedule (like an accelerated payment schedule), then an AutoPay might still fall on a holiday. In that case, using both keeps payments from batching on holidays.

Configuration steps for LMS company settings

To create a custom holiday schedule, go to your company settings in LMS.

1. Update your company settings: 
   • Navigate to Account > Company Profile > Company Settings.
   • Click the edit icon.
   • Click Holiday Calendar.
   • Select the days that should not have a payment due. Click ‘Save’.
2. Enable the custom schedule for a loan (loan must be inactive):
   • Navigate to Loans > New Loan. Begin setting up a loan or inactivate an existing loan.
   • On the Advanced Configuration tab, you will see an option for ‘Due on Business Days’. Change from disabled to ‘Add Days’ or ‘Subtract Days’.
     • Note ‘Add Days’ will move any payment dates that fall on non-business days to the next business day. ‘Subtract Days’ will move the payment date to the previous business day.
3. View reports to see new payment dates: 
   • Navigate to Reports > Transactions. Here you can view all scheduled payment dates. Note that payment dates that would otherwise fall on non-business days have been changed to the business day immediately before or after the set holiday.

Once you configure your custom holiday schedule, any payments scheduled for those days will be automatically adjusted to the nearest banking day (either previous or next depending on the ‘Due on Business Days’ setting above), ensuring smooth payment processing. 

Configuration steps for batch processing

To create a custom holiday schedule, go to your payment processor in Secure Payments.

1. Access payment processors:
   • Navigate to Secure Payments > Processors. Here, you can manage payment processors that support custom holiday schedules.
2. Select your processor:
   • For U.S. transactions using the Nacha processor, choose Bank Account/ACH (USA) > Nacha Batch Submission. 
   • For Canadian transactions using a CPA-005 processor, choose Bank Account/EFT (Canada) > CPA005. 
   • Note you can either edit a current processor or configure a new one. To edit a current processor, click the “edit” icon associated with that processor. To add a new processor, click the “Add” button in the top right corner.
3. Configure holiday settings:
   • Under ‘Exclude Banking Holidays’, click ‘Enable’ to prevent batching transactions on bank holidays.
   • Click ‘Customize’ to remove or add holiday dates. Click ‘Save’ once you are finished.

Once you configure your custom holiday schedule, any processing scheduled for those days will be automatically deferred to the next banking day, ensuring uninterrupted batch processing. 

Need help?

For additional information or assistance in creating a custom holiday schedule, contact the LoanPro support team.