Student Loan Payment Servicing Frequently Asked Questions
What happens when Payment Automation Network services an account?
Your account holders make payments directly to Payment Automation Network. We record the payment, calculate the payment breakdown, subtract any appropriate fees, and then quickly transfers the payment to your company.
In addition, Payment Automation Network, Inc. provides all the features you would expect from a traditional payment servicing, such as emailed monthly statements for the account holder, online account information, automatic bank drafts or ACH, the ability to make payments over the phone, highly trained customer service, and much more. Payment Automation Network, Inc. can process escrow lender payout payments to keep accounts current.
Payment Automation Network, Inc. takes all the hassles out of payment processing so that your staff can spend their time on more important things.
If a customer has a question about their account, who do they call: Payment Automation Network or your company?
For any payment questions, your customer should call the toll free number for Payment Automation Network, Inc. directly. Our customer service department has access to their account information and is ready to assist them in any way. For any questions regarding their consolidation, we will direct them to call your company.
What does Payment Automation Network do to collect late payments?
Your company will reschedule payments for NSFs with your clients. Then you notify us of the new payment schedule arrangements for automatic ACH payment collection.
If a late charge is assessed, does Payment Automation Network keep the late charge?
No. All funds collected belong to your company. There is a return item chargeback fee charged for each return item by our ACH processor that you will be billed for at the end of the month.
What if there are changes to the payment terms?
No problem. Any modifications, including payment changes, name changes, and others, can be emailed to Payment Automation Network for updating free of charge. Most other Servicing companies charge a fee for changes.
Do you hold funds before you disburse them?
In nearly all cases, we transfer the payment in good faith to your company the same day we receive them. At Payment Automation Network, Inc., we pride ourselves on how fast we distribute funds. There are certain situations that may require us to hold funds until a payment check clears. This typically only occurs when large dollar amounts are at stake. In such cases, you are always notified in advance.
I notice that Payment Automation Network charges a fee for NSFs and returned checks. Who will pay the returned check fee?
When we received notification of a return item, we back out the payment and add a return item fee to your client. We attempt to recover the fee from your account holder/client. There is a return item charge back fee charged to your company for each return item at the end of the month.
How much does Payment Automation Network charge for its services?
A small service fee per transaction is charged. The good news is there are no minimums or maximums to worry about. Contact a representative to go over pricing details for your business.