This article explains the concept and significance of NSF (Non-Sufficient Funds) and Chargeback fees in QuikStor Management Software. These are essential tools for facilities to recover losses related to unsuccessful or disputed tenant transactions.
What Are NSF and Chargeback Fees?
NSF (Non-Sufficient Funds) Fees and Chargeback Fees are financial penalties issued when there are problems processing tenant payments. These help the facility handle the administrative and financial burden of failed transactions.
a. NSF (Non-Sufficient Funds) Fee
This fee is charged when a tenant initiates a payment—such as via check or ACH transfer—but the account lacks sufficient funds to complete the transaction.
b. Chargeback Fee
This fee is applied when a credit card transaction is disputed, reversed, or flagged as problematic—often due to a tenant initiating a chargeback or other payment issues.
Why This Is Important
Recovers Costs: Helps the facility recover bank or processing fees tied to failed or disputed payments.
Discourages Payment Abuse: Acts as a deterrent against repeat failed transactions or frivolous disputes.
Automates Financial Handling: Streamlines how facilities manage unexpected transaction issues.
Provides Transparency: Ensures tenants are aware of the consequences of payment failures.
Improves Reporting Accuracy: Keeps payment records accurate for accounting and audits.