There are many reasons why ACH payments might fail, but the most common reason is insufficient funds. This will cause a reverse payment to appear on your tenant's lease ledger. When your tenant has a returned 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.

Read on to learn more about the reversed payment process and how it affects your reports and accounting.

Returned payments can happen for many reasons. The most common reason is insufficient funds. When this happens, a tenant's payment is returned on the system and they'll be charged a reverse payment fee. DoorLoop will handle all this on the backend.

You can also set up DoorLoop to automatically notify you when your tenant has a reversed payment.

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 was 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 Memo column of this report, you will see the reason for the return as reported by our payment processor. If they were ACH payments, you'll also see a special code attached to the reversed payment. To see a complete list of each ACH Error Code, you can read the article ACH Payment Return Codes and What They Mean.