Billing: Insufficient Funds

Overview

NSF Fees are charged for payments that fail due to insufficient funds. A $25 charge is collected when this occurs. You have the option to:

• Absorb the $25 fee.
• Pass the full charge along to the payer.
• Pass part of the charge along to the payer.

If you choose to absorb the fee, no additional setup is required. If you choose to pass along the full charge or a portion of it to the payer, some setup is necessary. Work with our Support team to set up and manage NSFs.

Important Notes

• Fees for Insufficient Funds (NSF fees) that you pass along to payers must be set up and managed by our team. If you have questions about your setup, please reach out to our Support team.
• If you are using Autopay and have enabled Retry Failed Autopay Payments on the Billing Setup page, NSF Fees will only charged for the first failed payment. If it fails again, NSF fees will not be charged again.
  • For more information regarding this feature, please refer to the Retry Failed Autopay Payments article.

Setting Up NSF Fees

• Contact Support with the following information:
  • The amount you'd like to charge for the NSF fee.
    • Full charge = $25
    • You can also opt to charge more or less than the $25 fee. 
  • The Billing Category that you'd like to assign the NSF to.
    • Please note: As a best practice, the Billing Category for NSF fees should be set up as an Account Level charge.

You might already have this set up on your site. If you aren't sure please, contact support and we can let you know!

How NSF Charges Work In Finalsite Enrollment

Example workflow of a failed payment:

• ACH payment made by a parent on 2/21.
• The payment fails on 2/25.
  
  
• The failed payment chargeback will post to the parent's ledger on the original date the payment was made, which was 2/21 in this example. 
• The NSF fee will be post on the day that the payment failed, which is 2/25. 

Ledger Lock Note

The Ledger Lock feature lets you secure your financial records by setting a locked date. Once enabled, it prevents any alterations to the ledger entries dated on or before the set date. It's set up in the Billing Setup page (Settings > Financial > Billing Setup).

Here's how the Ledger Lock affects failed payment behavior

• If the original date is within the locked range, both the chargeback and NSF fee will be posted to the ledger with the current date instead of the original payment date.

Read more about Ledger Lock and how it affects other areas of your site in our Settings: Billing Setup Page article.

Additional Resources

• Office Hours & Past Session Recordings
• Billing Categories