This article will show a list of frequently asked questions by ClubReady users in regards to the Refund Process.
How does the refund process work in ClubReady?
As your merchant processor, all payments flow through the ClubReady trust account. When you process a refund through your site, your member is credited back the funds to their card or account and ClubReadys trust account is debited. We pass that same amount on to your clubs site via the remit process. The refunds are then deducted from the revenue that was generated for the remit time period and you receive the net deposit after the refunds have been deducted. If no revenue has been generated during the remit period, the remit will be negative due to the refunds processed, and ClubReady is owed those funds back for crediting your member.
Why hasn't my member received their refund? Why is the refund showing as pending?
All refunds are placed in pending refund queue and released each time your remit is reconciled. When there is not enough revenue generated to offset requested refunds, they are held in pending refund queue until either there is enough revenue, or until ClubReady is reimbursed by the owner for the refund as you have already received a remit deposit for this transaction. If you have pending refunds, there is increased risk of members initiating a chargeback who are waiting on their refund to settle in their account. To make payment back to ClubReady and release the pending refunds, you may authorize ClubReady to take a one-time ACH payment from the bank account on file -OR- ClubReady can place an invoice within your site where you can pay the balance via credit card. Once the invoice is paid, the refunds can be released and will take 24-48 hours to settle in your members bank or credit card account.
Please be sure to monitor pending refunds within your site 1-2 times a week. On main toolbar select Reports > Sales > Pending Refunds > Run Report.
Why is there is a 6 day waiting period?
The 6 day waiting period ensures the payment transaction has fully settled and eliminates the possibility of refunding a payment transaction that may come back as a returned payment. ACH transfers are not instantaneous. The receiving bank may choose to hold the funds before releasing them to ensure the originating bank has sufficient funds. This means a standard ACH transfer takes an average of 3-5 business days to complete. The first day is when the transfer is initiated. Then, the Receiving Depository Financial Institutions (RDFI) has 48 hours from the time the ACH transaction was originated in order to notify of any return codes. After the third day, if no return codes are pulled, then the funds associated with the ACH debit can be issued to the Receiver. Note that for the most part, all these timelines operate around bank days. So, an ACH transaction requested over the weekend will be delayed at least one day.
Why is my remit negative if I still have money in my bank account?
ClubReady does not have access to directly debit your bank account without express written consent. We can only deposit money into your account. If revenue is not generated during the remit time period, the remit will remain negative until the balance is paid off, or when revenue is generated to absorb the negative balance.
If my account is negative, how can I pay my balance off so my refund process can be turned back ON?
If your account is negative, and you would like to pay your balance off, please reach out to our support department. There are 3 ways that your balance can be paid off:
- Via credit card - Since ClubReady is PCI compliant, we cannot take a credit card over the phone or email. We can put an invoice in your ClubReady site and you can pay it directly with your card. (preferred method).
- Via ACH - Please open a ticket with our support department (support@clubready.com) and provide them with the bank account and routing number that you would like to debit. They will route the ticket to our finance department to take payment.
- Via Wire - You can wire the funds directly to our trust account. Support will contact the finance department who will then give you the wiring instructions.