Effective Date: 7/26/2022
This article describes the details involved in adding a DebtPayGateway (DPG) Reserve Account. This article is broken down into the following sections:
- What is a Reserve Account?
- How does a reserve account work?
- How to make an initial deposit
- How do you set up a Reserve Account?
- Reserve Limit
What is a Reserve Account?
A DPG reserve account is a separate dedicated account that may be used to pay for consumer refunds, chargebacks, advances on consumer NSF accounts, etc. Reserve accounts are highly recommended as a mechanism to pay for unexpected business expenses and other funding shortfalls. The reserve account can be funded by depositing funds directly with DPG or they can be pulled from available earned fees.
How does a Reserve Account work?
Reserve accounts are “rolling balance” accounts and can be used up to the available balance. If funds are drawn down to advance a settlement payment or refund a consumer, the transfer is immediate and the account available balance is updated. The account is replenished daily from the earned fees you collect back to the preset reserve amount you set up.
How to make an initial deposit
For new companies who may not have sufficient earned fees to deposit, it is suggested to wire funds or mail a check to DPG. To wire funds directly, please contact DPG at settlements@debtpaygateway.com. The recommended minimum deposit is $500.00. For checks, please make payable to Debt Pay Gateway Inc. and send them to the following address: Debt Pay Gateway Inc. 1900 E Golf Rd, Suite 550,
Schaumburg, IL 60173
The alternative method is to wait for funds to build up in the account to meet the reserve limit. Note: during this time, any earnings will not be paid until the reserve limit is met. Any NSF accounts or fees that are due will need to be immediately funded and wired to DPG for payment.
How do you set up a Reserve Account?
The following steps illustrate the basics for setting up a reserve account in DPG. Navigate to the Accounting tab and select the "Fee Accounts" button (see below).
Account to Account Transfer
An Account-to-Account transfer allows you to instantly transfer funds between two payee Fee Accounts. A balance for the transfer must be available in the account to wish to transfer from.
To perform an Account to Account transfer, select the "Account-to-Account Transfer" from the banner option (see below).
The transfer modal will open and you will be prompted to select your "From Account" and your "To Account" from the dropdown menu. You'll then enter an amount and memo and select "Transfer Funds".
This is an instantaneous transaction and the withdrawal will show up in the history of the "From Account" and the deposit will show in the history of the "To Account".
NOTE: If you do not have adequate funds available, you will receive a warning like the one shown below:
Account to Client Transfer (can also be performed from the Enrollment page).
An Account to Client transfer allows you to instantly transfer funds from a payee Fee Account directly to a client custodial account. A balance for the transfer must be available in the account to wish to transfer from.
To perform an Account to Client transfer, select the "Account-to-Client Transfer" from the banner option (see image below).
OR if you can go to the "Enrollments" tab and select "Advance Fees" from the Navigation Bar.
The transfer modal will then open, and you will be prompted to select your "From Account" from the dropdown menu.
Enter the client ID/name into the "To Contact" field (select it once it shows up just like when searching for a contact). Next, enter a transfer amount in the "Transfer Amount" field. Finally, you may either type a memo in the "Memo" field (see example above), or if you click the "Memo" header a dropdown menu becomes visible to choose one of several pre-entered memos (see example dropdown menu on the bottom right of the image above). Click the "Save" button when finished.
This is an instantaneous transaction. The withdrawal will show up in the history of the "From Account" and the transfer will be reflected in the contacts enrollments as the type "Transfer".
NOTE: Not entering a recoup date will create a "Transfer" transaction type. To ensure a "Settlement Advance", add a recoup date (see next section below).
Account to Client Transfer - Settlement Advance
To perform an Account to Client transfer as a Settlement Advance, select the "Account-to-Client Transfer" from the banner option.
The transfer modal will open and you will be prompted to select your "From Account" from the dropdown menu.
Enter the client ID/name into the "To Contact" field (be sure to select it once it shows up just like when searching for a contact),. Next, enter a transfer amount in the "Transfer Amount" field, and select a "Recoup Date" from the calendar on a date the client will have funds in the future. Finally, you may either type a memo in the "Memo" field (see example above), or if you click the "Memo" header a dropdown menu becomes visible to choose one of several pre-entered memos (see example dropdown menu on the bottom right of the image above). Click the "Save" button when finished.
This is an instantaneous transaction. The withdrawal will show up in the history of the "From Account" and a "Settlement Advance" will be reflected in the contacts enrollments as the type "Settlement Advance".
The recoup transaction will be scheduled in the future as an ACH Credit Fee with the memo "Settlement Advance - Memo - "Recoup".
Reserve Limit
If you return to the Accounting tab and click Fee Accounts, you should see the top left of the page looking similar to the image shown below:
Select the payee account you wish to set up from the dropdown menu titled Select Payee Account. If you don't see the payee account you wish to use or need to set up a new payee account, contact Settlements@debtpaygateway.com for further assistance.
Once you have selected the payee account, click the link highlighted in red in the image above - Reserve Limit, and a pop-up window will appear (see below). Enter the amount and hit the Save Reserve button.
Note: The reserve limit can be changed at any time by your firm's authorized user(s).