Reverse Payments

General

At LoanPro, we strive to keep an audit trail inside our software so you can always have as much information as possible including the who, what, and when of your loan changes. This being the case, it is easy to reverse a payment, which will keep a record that a payment was made, and more difficult to completely delete a payment.

Reversing a Payment

To reverse a payment, navigate to Servicing > Payments inside of the loan.

Reversed payments will appear differently than active payments. To reverse an active payment, click . This will bring up the reverse payment dialog box.

Reversal Reason

Choose the reason for reversing the payment from the Reversal Reason drop-down. The options in this drop-down are:

  • Check Bounced
  • Clerical Error
  • Insufficient Funds
  • NACHA error code
  • Other

If the NACHA error code option is selected then another field will show up to select the NACHA Error

Here is a list of the  NACHA Return Codes 

LoanPro also provides settings that will, depending on the NACHA return code selected do the following actions, as configured at the company level:

  1. Cancel any AutoPay(s) using payment profiles that failed (tied to the payment that is being reversed)
  2. Inactivate the payment profile — this is inclusive of (1) above, as AutoPay’s will not process with inactive payment profiles.
  3. None

For more information on configuring these settings refer to this  article.

Note: If the payment being reversed was processed by a CPA005 processor, the list of return codes will be the Canada Return Codes.

Reversal Comment

Enter any open text comment about the reversal into the Reversal Comment field.

Charge Reversal Fee

Choose whether a fee should be charged as a result of the payment reversal. A manual payment reversal fee isn’t a standard fee in LoanPro. If you choose yes from the drop-down, you will simply be taken to Servicing > Charges once the reversal is logged so that you can enter a fee to be charged.

Reverse Merchant Transaction

This option will only appear if the transaction that is being reversed is tied to a payment profile (Merchant Services were used in posting the payment).

If you select “Yes” on this selection then:

  • For Credit/Debit Card Transactions: the Merchant Service transaction will be voided if the transaction has not yet been batched by the processor. If it has been batched by the processor then a separate transaction will be sent to the customer’s account providing a “net-void” between the two transactions.
  • For Bank Account Transactions: The transaction will be voided in PCI Wallet,  however, if you are doing offline processing then you’ll need to update any offline linked processor of this.

Once the payment is reversed, you won’t be able to edit it and it will no longer apply to the loan or lease however it’ll still show in the payment history. The payment statistics will capture the payment allocation at the time of reversal which can be seen in the Reports>Transactions>Payment Reversal — on the export list to know how the payment applied at the time of reversal.


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