AutoPay Defaults

Introduction

LMS allows you to create defaults for your AutoPays. In this article, we will explain how the process works. These are tenant-level settings that determine what values will be presets when you create a new AutoPay on an account. Keep in mind that you'll be able to change those values on any individual AutoPay, but saving defaults can help your agents save time when setting up and servicing loans.

Setting AutoPay Defaults

To set AutoPay defaults, navigate to Settings > Defaults > Tools > AutoPay Defaults inside your company account.

You can set independent defaults for each payment method: Bank Card, ACH, and EFT. First, choose which type of AutoPay you want to set the defaults for, and then click 'Edit' in the top right corner.

Your default options include:

Option

Description

AutoPay Type 

This is the type of AutoPay and is essentially the type of schedule on which the AutoPay will run. The options include:

  • Single Payment – This option lets you schedule a single payment that will be processed on a future date.
  • Multiple Payments – This option lets you schedule up to 10 payments, and you can specify each date and amount.
  • Recurring Payment – This option lets you schedule payments that are processed at a regular interval.
  • Recurring – Match Schedule – This option lets you schedule payments that will match the forecasted scheduled payments on the loan.

Type of Payment

This is the type of payment and determines the payment application.

Service Fee

Choose whether your company convenience fee should be charged when an AutoPay processes successfully.

Post Payment Update Apply Date

You can choose to have payments retry for up to 5 days if the original AutoPay doesn’t process successfully. Choose “Yes” from this drop-down if you want the payment application date to be updated based on the date when the AutoPay successfully processes. If you want to keep the original process date as the date to base the apply date on, choose “No.”

If AutoPay amount exceeds or is equal to payoff amount

This option lets you choose what the system should do if the AutoPay is attempted to be processed for more than the payoff on the account.

  • Do Not Process – This will cause the AutoPay to fail and a person will need to review the account.
  • Adjust it to match payoff amount – The AutoPay amount will decrease to equal payoff on the loan on the process date. Additionally, this will also adjust the payment type to be a Payoff payment.
  • Proceed with payment anyway beyond a 0 balance – This will continue to post AutoPays beyond the payoff of the account. This option should be used with caution. This will allow for you to continue taking payments from your borrower even after the loan is closed. The system will post these as “Regular” payments.

AutoPay Time

This lets you specify the hour of the day when payments from the AutoPay schedule will be added to the queue to be processed. Since these payments are added to the queue and only processed after the payments that are ahead of them, it’s unlikely they will process right at the hour.

We recommend setting this as a time outside of Daily Maintenance. Daily Maintenance is scheduled from 12 to a.m. to 6 a.m. in your time zone. During that window, the system calculates interest accrual, evaluates rules applied, adds automatic fees, generates reports, and performs a variety of other automated servicing tasks. Adding AutoPays to that list can slow down the system, but scheduling them outside of that window can help everything run faster and smoother.

Process on any calendar day or banking days only

This allows you to control the day payments are processed by allowing payments on any calendar day, or only on banking days. You can also specify if you would like the payment to be processed on the banking day prior-to or following a non-banking day.

Payment Process/Application Date Difference 

This lets you choose an application date for payments that isn’t necessarily the date the AutoPay will run. You can choose the same day or up to 3 business days in the past or future of the date the AutoPay processes.

  • Calendar Days +/- 1, 2, 3 days. If you choose +1 day, that means that the apply date will be 1 day greater than the process date.
  • US Business Banking Days +/- 1B, 2B, 3B days. If you choose +1B day, that means the apply date will be 1 US Business Banking Day greater than the process date.

E-Check Authorization Type

This option is only available for e-check AutoPays. This option specifies how the payment was originally authorized and usually has to match what is on file for your company with the payment processor. The options include:

  • WEB – Authorized via the web
  • TEL – Authorized over the phone
  • PPD – Authorized via personal signature
  • CCD – Authorized via company signature

Pay Extra Towards (Between Transactions)

If the AutoPay is over the regular payment amount, this option allows you to designate how the extra should be handled for Between Transactions loans.

  • Principal – This option will apply the extra amount towards principal, and the application of this amount will decrease the amount past due. Additionally, this could also decrease the next due payment amount.
  • Principal Only – This option will apply the extra amount towards principal, but it will not affect the amount past due or the next due payment amount.

Pay Extra Towards (Between Periods)

If the AutoPay is over the regular payment amount, this option allows you to designate how the extra should be handled for Between Periods loans.

  • Next Payment – This option will apply the extra amount to the next payment on the next payment due date.
  • Principal Only – This option will apply the extra to principal and neither the amount past due nor the next due payment amount.
  • Retry AutoPay – Choose to have the AutoPay retry every day for up to 5 days if the original AutoPay transaction is not successful. Note: If you process AutoPays manually (either in the UI or through the API endpoint) the retry will not work.
  • Process if Current – This lets you choose whether the system should still process AutoPays if the account they will process on doesn’t have an amount due.
  • Reschedule recurring payments based on – This lets you specify whether your recurring payments are scheduled based on the date the payment is processed or the date the payment is applied to the loan.
  • Process if Principal Balance is less than or equal to 0 – This setting allows AutoPays to continue processing—even if the Principal Balance is less than or equal to 0.

When you're done making edits, be sure to click the 'Save' button.


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