AutoPay is a term used inside of LoanPro that is short for automatic payment. This type of payment is scheduled beforehand and will automatically run on the specified date. Automatic payments can be set up in 1 of 4 four ways.
- The first way is to schedule a single, future payment.
- The second way is to specify up to 10 future payments. The amount and date of each payment can be scheduled independently, so no regular payment frequency is required.
- The third way is to schedule recurring payments. These will occur with some frequency and the amounts must equal either a specified dollar amount or one of the selectable loan numbers (such as payment amount or amount past due).
- The fourth way is to set an AutoPay to pull payments as they come due on the loan.
AutoPays are best managed in the AutoPay Manager.
Note: When you schedule a new AutoPay, the time entered is not the time that the autopay will be processed, rather, it's the time the AutoPay will be loaded into the queue. When AutoPays are loaded to the queue they will process in the order they were sent to the queue. If you have a large amount of AutoPays that are being sent to the queue at the same time, it could take several minutes to process all of the AutoPays, depending on the number of AutoPays sent, resources needed to process them, and the tenant environment (PSaaS vs SaaS).
How AutoPays Work
It’s important to know how AutoPays work in LoanPro. When you create a new AutoPay, only the first payment in the series is scheduled. Once this payment is processed successfully, the second payment in the series is scheduled. So if a payment does not process successfully, no further payments will be scheduled, and therefore, no further payments will be processed.
This means if a payment fails completely, you will need to take some action to re-establish the AutoPay.
This also means that if you have an AutoPay that is set up to pull payments according to a schedule, and you alter that schedule, then you will need to edit and re-save the AutoPay in order for it to pull the next payment on the correct date. This is because the AutoPay only looks at the payment schedule when scheduling payments, but not when processing them. Therefore, any currently scheduled payment will not change when the payment schedule does.
If the currently scheduled payment processes correctly, then the next payment will be scheduled correctly, because the system will look at the payment schedule again before scheduling it.
You can have the system retry a payment once a day for up to 5 days after the original AutoPay date. You can also have the system try to process the payment each day with up to 3 payment profiles (credit/debit card, bank account). Once the payment processes successfully, the next payment will be scheduled.
Note: If you process AutoPays manually (either in the UI or through the API endpoint) the retry will not work.
A successful AutoPay means that the payment was accepted either by a credit card company or by a bank. In the case of credit/debit card payments, you will receive almost instant feedback about whether the payment was successful. If you are using a bank account to process an eCheck, AutoPays will almost always be successful. This does not mean you will get the money, as the eCheck could still “bounce.” However, an AutoPay involving a returned eCheck is still considered successful by the system, even though the payment logged by the AutoPay may be later reversed.
When AutoPay dates are displayed to you, they are converted to your company timezone. They are all, however, saved in the database as UTC time. This is important to understand, because if you schedule an AutoPay to run next week, but between now and then the observance of daylight savings time will change, the AutoPay will run either an hour earlier or an hour later than expected.