AutoPay Overview

General 


AutoPay is a term used inside of AutoPal that is short for ‘automatic payment’.  These types of payments are scheduled beforehand and will automatically run on the specified date(s).  AutoPal has four different types of AutoPays that can be scheduled to fit nearly any possible scenario in which you would use this tool. For more information concerning the usage of AutoPay’s please refer to our article concerning the AutoPay Tool.

  • Single Payment – This option allows you to pre-schedule a single payment to process in the future.
  • Multiple Payments – This option allows you to pre-schedule up to 10 payments with varying dates, and amounts.
  • Recurring Payments – This option allows you to pre-schedule repeating payments based on frequency. The number of payments processed are determined by the setup. Amounts can be static (meaning the same for each payment), or based on delinquency, or future payment amounts.
  • Recurring Match-Schedule – This option allows you to pre-schedule repeating payments that follow the payment schedule generated during loan creation.

For assistance in scheduling an AutoPay, please see the following article: Schedule an AutoPay.

It’s important to know how AutoPays work in AutoPal.  When you create a new AutoPay, only the first payment in the series is scheduled.  Once this payment is processed successfully, the second payment in the series is automatically scheduled.  If a payment does not process successfully, no further payments will be processed.  That means if a payment fails completely, you will need to take some action to re-establish the AutoPay.  This also means that if you make a modification to the loan payment schedule and you have an AutoPay that is setup to pull payments in accordance with the payment schedule, you will need to edit and re-save the AutoPay in order for it to pull the next payment on the right date.

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This is because the AutoPay only looks at the payment schedule when scheduling payments, but not when processing them.  Therefore, the currently scheduled payment will not change when the payment schedule does.  If the currently scheduled payment processes correctly, the next payment will be scheduled correctly, because the system will look at the payment schedule again before scheduling it.

You can have the system retry a payment once a day for up to five days after the original AutoPay date.  You can also have the system try to process the payment each day with up to two payment methods (credit/debit card, bank account). Once the payment processes successfully, the next payment will be scheduled.

A successful AutoPay means that the payment was accepted either by a credit card company or by a bank. In the case of credit/debit card payments, you will receive almost instant feedback about whether the payment was successful.  If you are using a bank account to process an eCheck, AutoPays will almost always be successful.  This doesn’t mean you will receive the money, as the eCheck could still “bounce”.  An AutoPay where the eCheck is returned is still considered successful by the system, even though the payment logged by the AutoPay may be later reversed.

 

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