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NSF Recovery Service - Partner FAQ

NSF Recovery Service

Partner – FAQ

 

General Information

  • What is NSF Recovery Service?
    • NSF Recovery Service enables merchants to automatically attempt to collect the original transaction amount two additional times, upon receipt of a transaction return (R01 – Insufficient Funds or R09 – Uncollected Funds).  An NSF Fee will be charged and collected, regardless of whether the original transaction amount was successfully collected, on or shortly after the 1st of the following month.  
  • How many additional attempts will be made after the original transaction is returned?
    • There will be up to two additional attempts to recollect the original transaction amount.
  • Will the recollect attempt be immediate, delayed or scheduled?
    • The first attempt will be delayed by 3 days after the return is received and the second attempt will be delayed by 7 days after the second return has been received.  The total number of days would not surpass 14 calendar days.
  • Will there be a charge for every returned transaction? 
    • Depending on the agreement, yes, a ACH Debit Reject (ACHDR) fee may apply.
  • Can a recollect attempt be stopped?
    • No, once it has been initiated it cannot be voided or reversed. The only way to credit the customer would be to create a new transaction.

 

NSF Fee & Rebates

  • Which transactions will the NSF fee be charged for?
    • The NSF fee will be charged upon receipt of a R01 – Insufficient Funds or R09 – Uncollected Funds return code from the original ACH transaction.
  • How many attempts will be made to collect the NSF fee?
    • One attempt will be made to collect the NSF fee.
  • How much will customers be charged for NSF fees?
    • Upon receiving a return code (R01 – Insufficient Funds or R09 – Uncollected Funds), the standard NSF fee will be $20.    
  • What day of the month will the NSF fee be charged?
    • The charge to the consumer will be on the 1st of the month following the original returned transaction. (i.e., Return received in August, NSF Fee charged September 1st)
  • What is the standard merchant rebate that will be paid?
    • A standard $3 rebate will be credited to the merchant on their monthly invoice for NSF fees successfully collected.  
  • What is the standard partner rebate that will be paid?
    • A standard $2 rebate will be credited to the partner on their commission report for NSF fees successfully collected.  
  • When will the rebate be applied to the merchants invoice? 
    • The rebate will be applied as a credit to the invoice a month after the successful collection of the NSF fee.
      • i.e., Return occurs in August, NSF fee is charged on 1st of September (successful), rebate is applied as a credit to October invoice.
  • When will the rebate be applied to my commission report? 
    • The rebate will be applied to the commission report a month after the successful collection of the NSF fee.
      • i.e., Return occurs in August, NSF fee is charged on 1st of September (successful), rebate is applied as a credit to October commission report.

 

Merchant Nacha Requirements

  • What authorization language needs to be added to the website or invoice before enabling NSF fee charges?
    • As a duly authorized signer on the account supplied above, I authorize X (Merchant Name) to electronically debit my account for the amount specified above. In the event that this debit is returned unpaid, I authorize this item to be electronically re-debited in addition to a processing fee of $20.00 (or maximum legal limit) plus applicable taxes.

 

Merchant Reconciliation Information

  • How can merchants reconcile NSF attempts?
    • Within Dex, Transactions section, a report can be downloaded to include the following sections:
      • Attempt Number, Settlement Code Description, Settlement Date and Settlement Response Code
    • Authorization Number will also be included in the report which will match for all attempts made.
    • Utilizing Data, Filter in Excel can easily assist with the reconciliation of the transactions.

 

NSF Recovery Service Change Requests

  • How do merchants submit a request to adjust their recollect timeframe or number of attempts?
    • Merchants will need to complete the NSF recovery add services form. (Link)
  • Can merchants choose to increase or decrease the NSF fee amount being charged to their customers?
    • There are state maximum requirements that must be taken into consideration when increasing the NSF Fee amount charged to the customer. The state law pertains to the customer location, not the merchant location. If the merchant only has customers in one state, then please refer to the state fee max amounts.  If the merchant is requesting to decrease the amount charged. Within FreshDesk, an email should be sent to “Resellers" <resellers@forte.net.  Support Teams can help determine the state maximum amounts.
  • Can a merchant choose to charge an NSF fee without enabling automatic recollect attempts?
    • Merchants can submit to have their Recollect Attempts adjusted to 0, so that only the original transaction attempt will be shown. However, an NSF Fee will still be charged to the customer.  Please fill out this form.

 

Opt-Out Information

  • How can merchants choose to opt out?
    • Merchants will need to complete the opt out form here.
  • If merchants choose to opt out now, how can they be set up with the service later?
    • The merchant can complete the NSF recovery additional services form. (Link)

 

 

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