When your tenants make online payments, you don't instantly receive this money in your bank account. There is an ePay Funding Cycle that all online payments go through. However, depending on how your tenant pays, the cycle will vary in length. We explain these different cycles below.
1. Receiving Your First Payment
To ensure no fraud is being committed, our payment processor's underwriting team puts an additional hold of 5 business days on the first payment deposit they send you.
This means that your first batch of payments will take up to 8 business days to deposit if they are made via ACH.
2. Tenant Credit Card Payments
When your tenants pay using a credit card, their payment will take 2 business days to deposit into your bank account.
Your tenant will also pay a merchant platform fee of 3% of their payment amount.
3. Tenant ACH Payments
When your tenants pay via ACH (eCheck), their payment will take up to 3 business days to deposit to your account. This means payments made on a Monday before 7pm (ET) will be deposited in your bank as early as Wednesday.
Your tenant will also pay a merchant platform fee of $1.99 per ACH (eCheck) payment. If you have a premium level DoorLoop plan, your tenants don't pay an ACH processing fee.
Why do ACH payments take longer?
One of the reasons the ACH verification process takes longer is for risk management, as ACH payments might get rejected at any stage during the processing protocol. There are also numerous parties involved in processing the payment.
When your tenant makes a payment, first our payment processor will contact an ACH operator (such as the Federal Reserve) with the ACH request. The ACH operator sorts this request and passes it on to your tenant's bank. If your tenant has enough funds, their bank will send the payment to your bank.
Because ACH processing is done in batches, each step of the process is delayed until the next batch processing time. Some banks only process ACH batches once per day.
The upshot of these processing times is that payment money might not actually leave your tenant's bank account up to 2 business days into the ACH payment process. However, even if the ACH payment has not yet fully cleared, DoorLoop will advance you the money on the 3rd business day.
4. Tenant Reversed Payments
There are many reasons why ACH payments might fail, but the most common is for insufficient funds. When your tenant has a reversed ACH payment, DoorLoop will handle all the necessary accounting. DoorLoop also automatically adds the appropriate returned payment fees as charges to your tenant's lease for them to pay with their next successful payment.
Because DoorLoop advances you payment money after 3 business days even if the ACH process hasn't completed yet, you might receive a deposit for a tenant payment that ultimately fails. In this case, our payment processor will take the payment money back out of your bank account, or withhold it from a future payment deposit to your bank account. Don't worry, DoorLoop handles all the accounting of this for you so your reporting reflects accurately!
If you want to review reversed payments and how they affect your deposits from our payment processor, you can go to Reports and click on the Deposit Transactions report in the Accounting section. Here you can click on the line item for the deposit and it will show exactly what made up that deposit, including reversed payments.
If you want to see the reason why your tenant's payment reversed, click on the Reversed Payment report in the Who Owes You section. (You can filter by ePay only to see only online reversed payments and take out reversed payments you recorded manually.) In the Notes column of this report, you will see the reason for the return as reported by our payment processor.
5. Review Online Payment
To receive online payments, you need the following:
An active merchant account
Your default property bank accounts set correctly
How do I see that status and details of an ePay deposit?
You can check the ePay Deposits Report to review your online payments. Use these instructions to learn more!