ACH Return
Find out how our system handles returned ACH payments
On this page:
Overview
Our system handles returned ACH payments, most commonly due to Non-Sufficient Funds (NSF), in different ways depending on the ACH processing service you use with us.
Find the answers to common questions below.
Legacy ACH processing (4 business day processing)
If an ACH payment fails due to NSF or other reasons, our system handles the entire process automatically.
What our system does
- Update Payment Status: The payment is automatically marked as Failed.
- Deduct fund: The amount of the failed payment is deducted from your next payout.
- Report failed payment: This failed payment will be listed in the refund and debit sheet of your Payout Report.
What you need to do
- Upon receiving the ACH return notification from us, you must unapply the payment and re-open the original invoice(s), setting the correct balance in your ERP system
The next time our systems syncs invoices from your ERP system, the invoice status in Cut+Dry will update automatically, showing the invoice is now unpaid, and customers can pay the invoice again.
FTNI ACH processing (next business day processing)
The handling here depends on whether your bank shared the ACH return information with us. This setup was discussed and decided during the initial kickoff call with you, your bank and FTNI.
Scenario A: your bank shares the ACH return information with us
This is the simplest process. When your bank sends us a return notification, our system automatically marks the payment as failed so the invoice(s) can be updated during your next ERP sync
What you need to do
- In your ERP system, unapply the payment and re-open the invoice.
During the next invoice sync, the invoice status will be updated in Cut+Dry, and the customer will be able to pay again.
Scenario B: your bank does not share the ACH return information with us
If return details are not shared, we cannot automatically update the payment status. In this case, you’ll need to manually re-open the invoice in both your ERP system and Cut+Dry.
What you need to do
- In your ERP system, unapply the payment and re-open the invoice.
- In Cut+Dry, manually re-open the invoice(s).
Manually re-open an invoice
- Go to the invoice in the Cut+Dry portal.
- Click the three vertical dots (the Actions menu) next to the invoice.
- Select the option: “Mark as Unpaid.”
- The system will ask you to enter the remaining balance of the invoice.
- Once confirmed, the invoice will be re-opened and ready to be paid again.
For a step-by-step, with images, click here.
Important: If an invoice was paid as part of a batch payment, then an ACH return means that entire batch payment has failed so you must re-open all invoices in that batch. Our system will require you to manually unapply or re-open all invoices that were included in that single batch payment.
