Define the Payment Mode

  • Updated

Define the Payment Mode

Payment Mode is the means by which a payment or disbursement is made, such as cash, check, Automated Clearing House (ACH). You can set up the payment mode at the lending product level, to apply it to all contracts of that product. However, you can override this value at the contract level, or while creating a payment transaction.

The system looks for the payment mode at the transaction, contract, and loan product level, in that order.  

Payment files are generated when the transaction is created for the following events:

  • Loan Payment
  • Loan Disbursal
  • Investor Fund Transaction
  • Investor Withdrawal Transaction
  • Fee Payment
  • Broker Transaction

Based on the payment mode and event type, you can define different Filegen classes that must process the transactions. For example, for ACH transactions for disbursals, you may specify a different class file, while for payment transactions where payment mode is Cash, you may specify a different class file while setting up the Automated Payment Configuration.  

Note:

In cases where a lender manually deactivates an investment order, the investor loan transaction (ILT) that is created does not have any loan payment transaction (LPT) and hence, payment mode associated with it. In such cases, for successful processing of the ILT, the payment mode must be available on the loan contract.

Prerequisites

None.

Steps

Perform the following steps to define the payment mode:

  1. Log in to your Salesforce account.

  2. Click Servicing Configuration.

  3. Go to Misc., Payment Mode.

    The Payment Mode page is displayed.

  4. Click Define New Payment Mode.

    The New Payment Mode page is displayed.

  5. Specify the Payment Mode Name such as cash, check, ACH, excess, mobile, trust or wire. 

  6. Click Save.

    The details are displayed on the Payment Mode page.