Billing 3 - EFT Dishonored Transactions

Dishonored Transactions

Exceptions to the Rule

Replacement Payment

What about Monthly Pay Plans?

Dishonored Transaction Examples

NSF Limit Guideline

Policy Center

Here's a look at the Billing Tab on Policy Center. This tab identifies any EFT drafts that are dishonored. Click the to learn more!

How does this impact Monthly Pay Plan Policies?

Monthly payment plan policies removed from EFT, that are not also on E-Bill, will be placed on the next available payment plan down. The insured will be notified of this via US Mail.

Non-EFT Funds are Required as Replacement Payment:

• Cash
• Guaranteed Check
• Credit Card - will incur a 3% surcharge fee

The insured can make or post their replacement payment in the County Office, Home Office, or via Bill Matrix, as long as the policy is active. ***EFT billing will resume once a valid payment is posted.

Non-Sufficient Funds (NSF) Guideline

There is a five NSF limit within a 12 month period. This is bank account level, so that means if there is more than one policy connected to the EFT authority and there are five dishonored transactions, then ALL policies linked to that account may be kicked off EFT. This five NSF limit is a GUIDELINE and not systematic. Based on the circumstances, the Premium Processing Unit (PPU) may manually remove the policy from EFT. This won't be done automatically by the system. If the policy is removed from EFT, the insured will receive notification from us through US Mail.

Dishonored Transaction Examples...

Similar to dishonored transactions you may receive from a check payment.

• Stop Pay
• Uncollectable Funds
• NSF: Non-Sufficient Funds
• Account Closed
• Authorization Revoked

IMPORTANT: NCFB will NOT resubmit an EFT draft.

Exceptions to the Rule:

When a draft is dishonored because the Account Closed or Authorization Revoked, the system automatically removes the policy from EFT - even if it's not the insured's fault. Even after a replacement payment is made, EFT billing will NOT resume. Once this occurs, the insured must fill out a new EFT Authorization and Agreement form to re-establish EFT.

Policy Summary Portlet

In the Policy/Billing Information section, we see that there is an Outstanding Dishonored Payment.

Policy Transactions Portlet

Notice that the Payment Plan has changed to the next available pay plan down, which would be a 3-pay.

Billing History Portlet

The Billing History portlet shows that the account was closed (ACCT CLSD), resulting in a dishonored payment.

EFT Information Portlet

Here we can see that the Account Status is INACTIVE. In addition, the End Date displays the date the account closed notification was received.