Returned or disputed ePay transactions - Fraud prevention

According to NACHA rules and regulations, a customer can dispute a web transaction with their financial institution directly for 60 days. 

The following topics cover the most common situations that you might encounter:

1. Proof of Authorizations

From time to time, banks will audit their electronic transactions and ask for proof that an EFT was authorized. This process can be started by a routine internal audit or at the request of a bank customer.

If an EFT transaction from your merchant account is audited in a proof of authorization process, both Buildium and Forte Payment Systems will notify you of this process, which specific transactions are involved, and how to proceed.

While proof of authorizations are most common with EFTs/eChecks, they may occur on credit card transactions from time to time.

2. Funding hold

A funding hold is a temporary suspension of the ability to process online payments. Funding holds are usually caused when Forte Payment Systems cannot collect outgoing funds to cover an EFT to a vendor or rental owner or as a fraud prevention measure if there is an unusual transaction posted to the merchant account.

For example:

  • Bob accidentally sent an EFT to Hank the Handyman before the check had cleared. When the EFT was processed, his bank reported that there wasn't enough to cover it and Bob's account was placed on funding hold.
  • For three years, the merchant account only processed incoming payments of $300. One day, an outgoing transaction of $10,000 was reported. Because this was very unusual, the merchant account was placed on funding hold until the merchant had a chance to talk to fraud prevention.

You will be notified by Forte Payment Systems and/or Buildium as soon as your account is placed on funding hold. To resolve a funding hold, follow the instructions in the email or contact Forte's customer service department at 866-290-5400 x1.

While your merchant account is on funding hold, your ability to process EFTs and credit cards will be temporarily suspended in Buildium.

 3. Chargeback notice

A chargeback notice is a letter that is mailed to a credit card merchant that informs of a formal dispute on a recent credit card transaction. A chargeback notice indicates that the money is being collected immediately. The notice will contain instructions on how to resolve the dispute.

A chargeback notice is similar to a retrieval request.

Here's a sample of a chargeback notice.

To record a chargeback notice transaction in Buildium:

  1. Type the name of the resident in the search bar, then click Lease ledger or ownership account ledger next to their name.

  2. Issue a refund on the lease ledger or ownership account ledger.

  3. In the refund, enter a memo to indicate that it was a result of a chargeback notice.

4. Retrieval request

A retrieval request is a letter that is mailed to a credit card merchant that informs of a formal dispute on a recent credit card transaction. A retrieval request indicates that the money may be taken soon. Specific details will be included in the notice. The notice will contain instructions on how to resolve the dispute.

Here's a sample of a retrieval request.

A retrieval request is similar to a chargeback notice.

If you need to record withdrawn funds from a retrieval request:

  1. Type the name of the resident in the search bar, then click Lease ledger or Ownership account ledger next to their name.

  2. Issue a refund on the lease ledger or ownership account ledger.

  3. In the refund, enter a memo to indicate that it was a result of a retrieval request.

 

Article #: 112235

 

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