Payment Management: How do I turn on ACH payment for a select loan?

If a loan product does not generally use Smart ACH for payment processing, you can still turn on Smart ACH for select individual loans by following the steps below:

Step 1. Update Product Settings: Servicing/Repayment

The institutional account admin must first update the product settings for the respective loan product.  In the Servicing section related to Repayment, you will find the following choices.  May sure the "No. With Exceptions" is selected and saved.

Step 2. Click on "Switch to Smart ACH" link on "Loan Payment Schedule" Page

Open the Loan Payment Schedule page for the respective loan, you will find a link "Switch to Smart ACH".  Clicking on this link opens up a confirmation pop-up.  Once confirmed, a system generated email is sent to the borrower with instructions on linking a functional bank account as the payment source for the loan. This is an important and necessary step before Smart ACH can be turned on. 

You will also notice that the "Switch to Smart ACH" link will have turned into the following message "Pending borrower payment source".  This message indicates that the borrower is in the process of linking a payment account to this loan on the customer portal. Once the borrower has completed linking the payment account, this message will automatically update to a "Smart ACH" button. 

Step 3. Use the "Smart ACH" button to generate loan payment schedule and turn on Smart ACH

When the borrower has completed linking a verified bank account as the payment source for the loan, the institutional admin will receive an email notification.  You can return to the Loan Payment Schedule page and use the "Smart ACH" button to generate loan payment schedule and turn on Smart ACH.  After this final step, payments on this loan will be made automatically through Smart ACH.