Overview
Returned payment fees are charges imposed by a financial institution or a service provider when a payment, such as a check or an automatic debit, cannot be processed. In DoorLoop, these are automatically charged to the tenant's account when payments made electronically have failed due to insufficient funds or other issues with the account. Previously, DoorLoop would post these as a flat returned payment fee + the platform fee. You can now charge a custom amount other than the default amount using the new Return Payment Fee settings and charge more than the default or less, depending on how you want to handle returned payment fees.
The Steps
Set Up Company Default Returned Payment Fee Settings
To set the company default custom returned payment fee, click Settings on the main menu and then click Fees Settings under the Property Settings section.
On the Fees Settings window, click the Returned Payment Fees tab, which will take you to the Returned Payment Fees settings.
On the Returned Payment Fees section, enter in the Amount field the amount you want to charge for reversed payments. This can be any fee between $0-100. (This is the fee that will appear on the tenant's lease ledger when a payment is reversed).
The section labeled "Which account should the fee go into" will default to the Expense > Merchant Returned Payment Fee category. However, you can choose any account category for this based on how you want your accounting to look.
Click Save to finish.
Set Up Property-Specific Returned Payment Fee Settings
To set the property-specific custom returned payment fee for a property, use the Global Search at the top and then search for the property you want to add return payment fees for. Click the Properties tab and click on the property.
Once on the property, click the Settings tab. Then click on Fees Settings.
On the Fees Settings window, under the Returned Payment Fees section, choose the option for "Specify returned payment fee for this property." Then enter in the Amount field the amount you want to charge for reversed payments. This can be any fee between $0-100. (This is the fee that will appear on the tenant's lease ledger when a payment is reversed).
The section labeled "Which account should the fee go into" will default to the Expense > Merchant Returned Payment Fee category. However, you can choose any account category for this based on how you want your accounting to look.
Click Save to finish.
Set Up Lease-Specific Custom Returned Payment Fee Settings
To set the lease-specific custom returned payment fee, click Leasing on the main menu and then click Active Leases.
On the Active Leases page, find and click on the lease you want to apply custom returned payment fees on.
Once on the lease, click the Settings tab. Then click on Fees Settings.
On the Fees Settings window, under the Returned Payment Fees section, choose the option for "Specify returned payment fee for this lease." Then enter in the Amount field the amount you want to charge for reversed payments. This can be any fee between $0-100. (This is the fee that will appear on the tenant's lease ledger when a payment is reversed).
The section labeled "Which account should the fee go into" will default to the Expense > Merchant Returned Payment Fee category. However, you can choose any account category for this based on how you want your accounting to look.
Click Save to finish.
Things to Consider
Each payment that is reversed by a tenant will still incur a fee to your account, which the merchant account owner is responsible for.
Read more about how Reversed Payments and Returned Payment Fees are handled.
Please check your local laws to verify how much you are legally allowed to charge or not charge.