How to handle bounced checks/NSF?

With check fraud on the rise and with manual, time consuming check processing, electronic payments are clearly the recommended method of handling payments.

Yet you may still have to process check payments.
Sometimes you have to deal with a bounced check, where the account of the payer does not have sufficient funds (NSF).

In such a case we recommend the following three steps:

1. Delete the failed payment
2. Edit the transaction. If applicable, add fees to the transaction, add a description on the transaction, noting that the payment has failed, stating the check number, and possibly upload a picture/screenshot.
3. Once you receive a valid payment (e.g. cash or a new check), add a payment.

You can do this by navigating to: 

Accounting > Transactions > click on the specific transaction

1. Delete the failed payment.

2. Edit the transaction, update and save.

3. Once you receive a new payment, record the payment and save.

Note: For Lockbox or Bulk deposits, multiple payments may be lumped together. Be careful selecting the right payment to be deleted. You may not be able to delete such automated payments!

If you cannot delete a payment line item that was part of a Lockbox or Bulk transaction, we recommend to handle a bounced check situation as follows:

Navigate to Accounting > Transactions > Add:

1. Create an Expense Transaction against your company (e.g. Association/Property Management company) for the bounced check.

2. Create a new Income Transaction against the user (homeowner/tenant) in the amount they owe.

3. Upon receipt of valid payment, "Record Payment" for the new Income Transaction