What happens when payment failure occurs?
If the first payment failure occurs on the first instalment, the schedule will be automatically cancelled without fees involved.
If the first payment failure occurs between the schedule, the system an email to the client informing them of the payment failure and that the system will retry the debit in seven days.
No fees will be taken from the client and no dishonour charges to the merchant at this stage.
Payment failure notification to the client
The merchant administrator will also receive a warning email from the system.
If on the second try the debit fails again, the Professional Fee Funding will be cancelled and the system will debit any outstanding amount in the Professional Fee Funding (SOR) agreement from the firm's account with no other fees.
The Service Fees taken from the client cannot be refunded.
Schedule cancellation notice to the client
Schedule cancellation and payment recourse notice to the merchant
Reinstating A Cancelled Professional Fee Funding (SOR) Schedule
Unfortunately, there is no flexibility to reinstate a Professional Fee Funding (SOR) schedule that was cancelled. If the client enters into another Professional Fee Funding (SOR) instalment agreement, it will be a brand new schedule and service fees will be taken once they accepted it.
If you wish to put the client back to an instalment arrangement, you may create a special vanilla instalment or a Special Non-Professional Fee Funding (SOR) Instalment arrangement for the remaining amount. However, unlike with Professional Fee Funding (SOR) Instalments, the payments will only be settled to the firm's account as we take them.
When creating a special vanilla instalment or on-balance sheet instalment, please ensure that the Professional Fee Funding (SOR) box is not ticked.
