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.
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
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:
- Cancel any AutoPay(s) using payment profiles that failed (tied to the payment that is being reversed)
- Inactivate the payment profile — this is inclusive of (1) above, as AutoPay’s will not process with inactive payment profiles.
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.
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.