Overview
Depending on the merchant processor that you use, you may have to fill out multiple forms to receive both credit card processing AND ACH processing. Please check with your merchant processor if you are unsure.
Settings and Navigation
You can find settings for your merchant processing in Control Panel > Integrations > Payments tab.
If you turn on eCheck options without an ACH account there will be errors and the transaction will not process.
How eCheck (ACH) Works
Electronic checks are processed via the ACH (Automated Clearing House) network. A customer provides their bank account information (bank routing and account number) for processing.
Using the customer’s bank account information, an electronic request is made to charge the customer in the amount of the purchase. Processor receives the electronic request and stores the transaction in the “batch” with your other transactions for the day.
At the end of each business day, a request is submitted to the customer’s bank through the Automated Clearing House (ACH) to charge that particular customer. The eCheck system waits for the result of the transaction from the bank. This process usually takes two to three (2-3) business days. The funds are transferred (via electronic funds transfer, or EFT) from the customer’s bank and deposited into your business bank account.
Your account balance is updated depending on the results of the transactions.
ACH Returns/Declines
When a payment is returned for NSF that was processed using the ACH functionality in SM, there is nothing to refund to the Customer; the check (ACH transaction) bounced - funds were not received. There is a delay with ACH transactions, you get an approval, then a week or two later, it could be returned (no good).
ACH declines are made by the customer's bank, not the SM software. ACH transactions aren't processed in real-time but in batches. Therefore, there will not be an instant approval or decline like card transactions, it’s like a bounced check. The software is going to show approval and then use the ACH network to try and locate the account numbers that were provided.
A "refund" is needed for these transactions in SM to know that these funds were essentially never received so there is no issue with accounting and also royalty payments.
When issuing the refund, Unchecking that Refund/Void through (payment processor) box makes it so you can record that a refund happened in SM without having to push it through your connected credit card processor. It's useful for situations where a refund is not needed and you don't want to try and refund the customer's card or bank at all.
Once the refund is issued, you can return to the invoice details page and view that the invoice status has returned to Open and will now allow you to accept further payments.
Note: The Federal Reserve doesn’t notify the originating bank of a failing transaction, instead, the originating bank checks with the Federal Reserve daily to see if there are any returned transactions for them. Speak with your processor to see if they can set your account to receive ACH Returns notifications via email, per occurrence.
FAQs
The owners would like me to remove the ACH option movinforward on all invoices, and future customers. how would I go about doing that?
Go to Control Panel > integrations > Payments. Uncheck all boxes beside eCheck, the select save.
Will unchecking the ACH boxes remove the option for our current customers who already pay with ACH ?
Yes, the option is not actually attached to the Invoice but is a configuration of how you set your account. If an Invoice has a balance and you make the change, when they go to pay again there will be no ACH option to select
Is there a way then to reconfigure the invoice/proposal so credit card is the first option instead of echeck?
There is no option to reconfigure the invoice/proposal so credit card is the first option instead of ACH.
Is ACH available through the customer portal, self-scheduler also?
Yes, both eCheck and credit card are available payments for a customer who is using the online portal through serviceminder.
How do I remove credit card payment and make it ACH only for just Invoices?
You would turn off CC next to Invoices and leave eCheck box turned on in Control Panel > Integrations > Accounting tab. This only applies to new invoices and proposals moving forward. For existing proposals or invoices you have to do it in settings on the individual proposal or invoice.
How do I refund ACH?
You cannot refund echeck payments directly through serviceminder. You will need to contact your payment processor directly. To learn more about Declines and Refunds, please visit our additional help page.
