NSF Cancellations
When a tender is canceled, a cancellation reason must be supplied. If the cancellation reason indicates a NSF (non sufficient funds) charge should be levied, the system invokes the NSF charge algorithm specified on the tender's account's customer class. Algorithms of this type will typically create an adjustment or billable charge to levy the NSF charge. Refer to NSFC-DFLT for an example of such an algorithm.
The payor gets the NSF adjustments. It's possible for the payor of a tender to differ from the payee (e.g., when a social service agency pays for other customers' debt). When you cancel a tender you must specify a cancellation reason. If the cancellation reason indicates an NSF charge should be levied, the sample algorithm provided with the system levies the NSF charge on the PAYOR's account. Because adjustments must be linked to a service agreement, the algorithm picks the payor's service agreement with the highest payment distribution priority and levies the adjustment specified in the service agreement's SA type's NSF adjustment type.
Besides calling this algorithm, a NSF cancellation may affect the tendering account's credit rating and cash-only score. The cancellation reason indicates the extent to which the account's ratings are affected.
And finally, whenever a tender is canceled due to non-sufficient funds, the account is scheduled for review by the Account Debt Monitor.