What are returned EFTs, and what fees and terms apply?
When an electronic funds transfer (EFT) is returned by your bank, it can result in additional fees and specific terms of use. This article explains the common reasons for returned EFTs, the associated fees, and the terms that apply.
Overview of Returned EFTs
A returned EFT occurs when a bank transfer is not successfully processed by your bank. This can happen for several reasons, such as insufficient funds in your account or a bank-initiated return. Returned EFTs are typically handled by payment processors, not Betr, and may result in additional charges.
Common Reasons for EFT Returns
Returned EFTs can occur due to:
Insufficient funds in the account
The bank declining the transaction for other reasons
These issues are determined by your bank and are not controlled by Betr or the payment processor.
Fees Associated with Returned EFTs
When an EFT is returned, the payment processor may assess a returned EFT fee. This fee is a service charge for handling the failed transaction and is separate from any charges by Betr. Under the terms of use, you agree to pay:
The amount of the returned EFT
The returned EFT fee
Applicable sales tax and any other fees allowed by state law
These fees are outlined in the payment processor’s terms and conditions.
Terms and Conditions for Returned EFTs
By using the services of a payment processor, you agree to their terms of use, which typically include:
Responsibility for paying the returned EFT amount, fees, and applicable taxes
Authorization for the payment processor to re-present the returned EFT to your bank for collection
These terms ensure that the payment processor can attempt to collect the funds again if the initial transfer fails.
Re-Presentation of Returned EFTs
In many cases, returned EFTs may be electronically re-presented to your bank for collection. This means the payment processor will attempt to process the transaction again. This process is standard practice and is included in the terms of use you agree to when initiating the EFT. By understanding these details, you can better manage your account and avoid potential fees associated with returned EFTs.