You may have noticed on your Failed Transaction Report a letter “L” in front of a Failure Code for an eCheck transaction or noticed the words “Late Return” on your SmoothPay Batch Detail report.  A Late Return happens when the donor’s bank is late to decline an eCheck transaction which has already deposited to your bank account.  This resulted in the debit of the Late Return from your account.

Remember, there is no authorization process for an eCheck transaction, so there is no “approval process” like there is with a credit or debit card.  The Receiving Depository Financial Institution (RDFI) – your donor’s bank – receives the eCheck and then responds if the transaction is declined.  A decline would result in the donor’s transaction being marked as Failed in your Qsuite.  In those instances where the RDFI (the donor’s bank) is delayed in responding with a decline and the funds have already deposited to your account, this would result in a Late Return and the funds would be debited back from your account. eCheck transactions which are a Late Return will have the letter “L” in front of its Failure Code indicating why it was declined and that is was Late.

For more information on eCheck/ACH Payment Processing, visit our post on the CashLINQ Support Blog titled: The Basics: ACH Payments – The Roles.

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