Non-Sufficient Funds Fee Solution

We’re delighted to announce the launch of our new NSF (Non-Sufficient Funds) Fee Solution, giving you the ability to automatically apply penalty fees when subscription payments are declined due to insufficient funds.

How it works: 
Below is a quick run through of the key mechanisms behind this solution.

How is the solution enabled:

The solution can be enabled and configured from within the Dashboard, in the Settings->Fees page: 

From this section the following settings can be configured:

1. Setting the Fee Amount to be charged
2. The Tax Rate(s) to be applied to the charge
3. Enabling/Disabling the service

When is an NSF Fee Invoice is created:

First, the service must be enabled using the settings page outlined above. Once enabled, if the initial payment attempt of a recurring subscription cycle results in a decline for the reason of non-sufficient funds an NSF Fee Invoice will be created.

This NSF Fee Invoice will be visible on the member’s Transaction tab, in a pending state (with an Orange border).

The member will also be displayed within the Money Owed report whenever there are funds outstanding on an NSF Fee Invoice, and the amount of money owed will be inclusive of the outstanding NSF Fee Invoice.

When is an NSF Fee Invoice charged:

The NSF Invoice will be automatically charged following the schedule detailed below. Additionally, it is also possible to manually charge the NSF Fee Invoice, or to write it off. 

Automatic Charging:

The NSF Invoice will be automatically charged, in line with the existing subscription retry schedule:

For Card Payments:

• If the first retry for a subscription cycle is successful, and the NSF Invoice has not yet been charged or written off, the NSF Invoice will automatically be charged. Otherwise, the system will wait until the second retry attempt.
• If the second retry for a subscription cycle is successful, and the NSF Invoice has not yet been charged or written off, the NSF Invoice will automatically be charged. Otherwise, the system will wait until the third retry attempt.
• Regardless of the outcome of the third subscription, once the NSF Invoice has not yet been charged or written off, the NSF Invoice will be automatically charged.

For Direct Debit Payments:

• Once the NSF Invoice has not yet been charged or written off, the NSF Invoice will automatically be charged at the same time as the retry attempt, regardless of the outcome of the retry itself.

A successfully charged NSF Invoice will be highlighted with a green border to the left hand side:

Manually Charging:

So long as no other attempt to charge the invoice has occurred, including automatic charging attempts, it is possible to manually trigger a charging attempt through the Pay action on the transaction card displayed within the member’s Transaction tab:

Writing Off:

It is also possible to manually write off the NSF Invoice. This is achieved through the Write off action on the transaction card displayed within the member’s Transaction Tab:

This action is also available for NSF Invoices where an attempt to charge has occurred but was unsuccessful. Unsuccessfully Charged NSF Invoices will be highlighted with a red border to the lefthand side:

If you have any questions, please contact us at support@glofox.com.