Use Convenience Fees

General

Convenience fees are optional  fees that can be charged to borrowers for the convenience of paying with a credit/debit card or eCheck online.  It is not legal to charge your customers for the processing costs associated with these payment methods, so we advise you to be careful to call this fee a convenience fee.

Options

You have four options to choose from that will determine the amount of your convenience fee.  You can charge a flat dollar amount, a percentage of the amount being paid, the lesser of a flat dollar amount or a percentage of the amount being paid, or the greater of a flat dollar amount or a percentage of the amount being paid.  State and federal laws may govern the maximum amount you can charge and the type of fee you can charge.

To fall within legal guidelines, convenience fees should only be added to alternative payment methods that are outside the typical payment methods offered by the lender.  This means that if you charge a convenience fee, there should be payment options available to the borrower that don’t have a convenience fee associated with them.

In Practice

You can set defaults for the convenience fee by navigating to Settings > Defaults >New Loan >  Loan Type Specific then specify the loan type for which you would like to set the default and select .  Once you are editing the defaults, go to the Loan Settings section.  

Select  to save your default changes.

You may also update convenience fee defaults by navigating to Settings > Defaults > New Loan >  User Group Defaults.

Note: If a user has a User Group Default assigned, those defaults will override Loan Type Specific defaults when they are creating a loan.

Inside of a Loan

To update the convenience fee settings for a specific account navigate inside of the account to Loan Settings > Settings > EDIT.

You also have the option to change the convenience fee while  making a payment on an account.

To waive the convenience fee, select the Waive Convenience Fee option in the Payment Profile Information tab.

Automatic Payment Service Fee

You may select to charge a convenience fee with each AutoPay that is ran on an account. To accomplish this, set the Service Fee setting to "Yes, Charge Convenience Fee" while setting up the AutoPay. This setting can be found in the Advanced Options of the AutoPay setup.

If this setting is set to yes, when the AutoPay is processed it will automatically be processed with the calculated convenience fee amount added to the payment amount, and a convenience fee will automatically be logged on the account for the correct amount.

Note: To adjust the default Service Fee setting for AutoPays, navigate to Settings > Defaults > Tools > AutoPay Defaults.

Online Payment Service Fee

You may choose to specifically charge service fees for payments made online. To turn on online payment service fees navigate to Settings > Website > Access Settings > Loan Access > GENERAL, then set "Charge Online Payment Fee to Customers" to enabled. 

This will cause a service fee to be charged with every online payment made by customers. The payment will be automatically adjusted to the correct amount to cover the service fee being charged. However, if the service fee for a customer account has been set to a static amount of zero, no service fee will be charged with online payments made for that account.

Note: Automatic payments set up by customers online will use the default  AutoPay setting for Service Fee. This means that if the "Charge Online Payment Fee to Customers" setting shown above has been disabled, service fees may still be charged for AutoPays that have been setup online if the AutoPay Service Fee default setting is yes. As previously mentioned, to adjust the default Service Fee setting for AutoPays navigate to Settings > Defaults > Tools > AutoPay Defaults.


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