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Set Up the Returned Payment Fee

Configure the returned payment fee in DoorLoop — automatically charged to tenants when ACH or electronic payments fail due to insufficient funds.

Written by Samuel

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.

You can charge a custom returned payment fee — between $0 and $100 — instead of the default flat fee plus platform fee.

The Steps

Set Up Returned Payment Fee Settings

  1. To set the returned payment fees, click Settings on the main menu. Then under the Property Settings section, click Fees Settings.

  2. On the Fees Settings window, click the Returned Payment Fees tab.

  3. 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).

  4. 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.

  5. Click Save to finish.

Tip: Property-Specific Returned Payment Fees

You can override the company default with a unique returned payment fee for a specific property.

  1. Click Rentals > Properties, and select the property.

  2. Then on the property, click Settings > Fees Settings > Returned Payment Fees.

  3. Choose "Specify returned payment fee for this property" in the settings.

  4. Set the Amount the same way as the company-level steps above.

Tip: Lease-Specific Returned Payment Fees

You can also override both the company and property defaults with a unique returned payment fee for a specific lease.

  1. Click Leasing > Leases, and select the lease.

  2. Then on the lease, click Settings > Fees Settings > Returned Payment Fees.

  3. Choose "Specify returned payment fee for this lease" in the settings.

  4. Set the Amount the same way as the company-level steps above.

Note: Each payment that is reversed by a tenant will still incur a fee to your account, which the merchant account owner is responsible for.

Important: Please check your local laws to verify how much you are legally allowed to charge or not charge.

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