Decline & Reversal Reasons

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Contents

Overview

The Decline & Reversal Reasons configuration is where you add the reasons:

  • Credit and Bank Cards can be declined.
  • A Funding Source can be invalidated.

These reasons apply to cards or Funding Sources associated to BILLING TRANSACTIONS ONLY, not to POS transactions. The POS transactions are governed by the Invalid Credit Cards functionality.

Decline & Reversal Reasons must be configured BEFORE Decline Reason Mappings. These Decline Reasons can be linked ("mapped") to a specific decline code provided by the credit card or ACH processors e.g. VISA, MasterCard, etc.

Also, if you are going to establish any fees for declined credit or bank cards during the initial billing process or during reprocessing, you must configure these Decline Fees in Item Setup. Remember...you must select Fee as the Item Type for the item to display in these drop-down lists.

These Decline Fees work in conjunction with the Re-Billing functionality in the Billing Schedules. If a payment, or Re-Billing, is declined, the Decline Fee is automatically applied to the party's primary account.

Configuring Decline & Reversal Reason

To Configure Decline & Reversal Reasons:

  1. From the Launch Pad, click the System Configuration icon in the left navigation panel.
  2. In the Financial section, select Decline & Reversal Reasons.
  3. Click Add Decline Reason. The row editor displays.
  4. Enter the Decline Reason in the Description text box.
  5. The Active check box defaults to selected. If you want to deactivate this Decline Reason, clear the check box.
  6. If you select the Rebill check box, the transaction will be reprocessed automatically in the next billing cycle.
  7. The Invalidate check box gives you the option to invalidate a funding source after specific conditions are met.
    1. If you select this check box, the # of Declines, Within Months, and Include Rebill options activate.
    2. The Invalidate options have a distinct "flow" that will help you determine your settings. Do you want to Invalidate the card (Funding Source)? (see Invalidating a Funding Source below for additional information).
      1. If No, the remaining options in this section are not activated and you can proceed to the remaining setting options.
      2. If Yes, after how many # of Declines? (i.e enter how many times will a card be declined before you want it invalidated.) Enter or select that number in the selector field.
      3. And Within {how many} Months? Enter or select that number in the selector field.
      4. Does this number of declines within the number of months Include Rebill? If Yes, select the check box, if No, leave it clear.
  8. Select a Decline Fee (optional).
  9. If you select a Decline Fee, you must then select (or enter) after how many declines will this fee take effect in the After # of Declines selector field.
  10. Enter how many times you would like this fee applied in the Max # Decline Fees selector field. If you do not want to limit the number of times the fee is applied leave the field empty i.e. a Decline Fee will always be applied after the initial fee. (See Configuration Tip below for other considerations in setting the previous two fields).
  11. Select the Manual Payment Reversal check box if you want this reason to display when doing a Payment Reversal in Invoices tab on the Member Profile or in POS.
  12. Click the Update button.
    Adding a Decline Reason.

Configuration Tip

Something to consider when configuring Decline Reasons is how the payment method (Funding Source) affects the After # of Declines and Max # of Decline Fee settings. Typically banks will charge a fee for every decline or overdraft. If the Agreement Funding Source is a bank draft (bank card), and you enter more than one (1) in the After # of Declines field, if that same card fails multiple times, you will be charged by your bank for each failed transaction.. Hence set this figure and create your Decline Fees accordingly!

Invalidating a Funding Source

You can automatically Invalidate a Funding Source after it has been declined a designated number of times within an established time period in MosoPay e.g. if a Member's Credit Card is decline 3 times in 2 months for insufficient funds, it can be invalidated automatically if that Decline Reason was selected when the payments were processed.

There are two (2) requirements for this functionality to be operable:

  1. Select the Invalidate check box, which gives you the ability to enter the rules for automatic validation in the following selections (see steps above).
  2. This Decline Reason must be properly mapped in the Decline & Reversal Reason Mappings so the correct code is returned to invalidate the Funding Source when it is processed during the billing cycle.

The billing cycle is processed by the MosoMRM Task Processor(MTP), which runs every night behind the application. When a Funding Source meets all of these criteria it is automatically invalidated by the MTP, which simply flips the Invalid check box to selected for that Funding Source in the Accounts tab on the Member Profile page (on the MosoPay screen).

Next Step?

NEXT STEP: Response Codes & Reversal Reason Mappings..........Previous Step: Invalid Credit Cards

And remember to set your Screen Security when you get to the next page!

Technical Information

Related Information

Financial

AR Management Configuration
Billing Schedules
Commission Batch Management
Commission Groups
Decline & Reversal Reasons
Decline & Reversal Reason Mappings
Holidays


Invalid Credit Cards
Tender Types
Target Entry
Tender Report Group
Payroll Schedules
Performance Schedules
Performance Schedules


System Configuration
The MosoMRM User Interface
The MosoMRM Glossary
Setting Up Your MosoMRM System
The MosoMRM Modules
Operation Security
Feature Security


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