|Doc. Number||Article Title||Effective Date||Version|
|FHC-XX||Title||January 9, 2023||0.1|
It has come to our attention that there may be some confusion regarding how Direct Pay conversions impact uncollected settlements that remain in a Low Balance / Pending status. In some cases, settlement payments have been processed for accounts that were already voided and/or broken with the creditor. To minimize this, Forth would like to clarify how settlement payments are affected when the status of the transaction changes or when converting to Direct Pay from an ACH / Check By Phone:
If a transaction is Low Balance on the process date and then gets funded at a later date (payment status changes from Low Balance to Pending), the payment will be pushed out within the next processing cycle.
If an account was originally set up as ACH / Check By Phone, but a payment was never presented against your Settlement Account and the transaction was then converted to Direct Pay. (payment method changes from ACH / Check By Phone to Direct Pay), the payment will be pushed out within the next processing cycle.
In each of the above cases, we believe it is prudent for your teams to confirm with the respective creditors on the validity of the settlement before the payment is processed via direct pay.
What tools are available to us to help find Low Balance or past due Direct Pay transactions?
The Low Balance forecast report is a predictive reporting tool that forecasts future Low Balance payments based upon the consumer’s payment schedule, monthly draft deposits, fees, etc. Forth encourages you to use this report to manage all Low Balance accounts and act/update transactions accordingly.
To learn more about this report: https://support.forthcrm.com/hc/en-us/articles/12854306858515-Low-Balance-Forecast-Report
The uncollected settlement report displays all unpaid settlements for the last 90 days. Forth defines uncollected specifically as anything that has not been Cleared and is still in PENDING, LOW BALANCE, or SHIPPED status. This report can be used to reconcile and track unpaid debts, minimize missed payments, and avoid broken/VOIDED settlements. In this report, you can filter by payment types to review ACH / Check By Phone and Direct Pay transactions to help you manage your past due payments and reach out to creditors if a settlement has been voided or honored.
To learn more about this report: https://support.forthcrm.com/hc/en-us/articles/12854306506131-Uncollected-Settlements-Report
Who are the current direct pay creditors?
To learn more about these creditors: https://support.forthcrm.com/hc/en-us/articles/12854542519699-Current-List-of-Direct-Pay-Creditors
Please contact us if you have any questions or concerns.
Article Version History:
|0.1||01/09/2023||Updated for Forth rebranding, including hyperlinks; Added header and version control footer|