Automatic payment overview

Recurring automatic payments can provide you and your clients with peace of mind when payments are automatically drawn on or near the initial, installment, or renewal due date.

Invoices and automatic payments

Invoices are the premium bills sent to the insured to notify them of the upcoming payment and due date. Invoices don’t print for policies set up on auto-pay. Instead, a Pre-Authorization Payment Schedule prints for policies on auto-pay. The Pre-Authorization Payment Schedule provides a summary of payment amounts and withdrawal dates for the policy on auto-pay. When you amend or create a mid-term endorsement on a policy on auto-pay, the change isn’t reflected in the Pre-Authorization Payment Schedule. The system will create an amended invoice to show the recent change.

By default, automatic payments don’t pull against amended invoices unless the amended invoice due date matches the due date on an Initial, Renewal, or Installment payment. An automatic payment won’t be pulled if the amended invoice is due before or after the Initial, Renewal, or Installment payment. If the automatic payment isn’t pulled, the policy can enter non-pay.

If enabled, the advanced setting auto_pay_include_endorsement will allow automatic payments to pull and process against policies with an amended invoice.

When the policy term is paid in full, invoices in the remaining policy term will be marked paid in full and the system won’t attempt to pull funds. If invoices aren’t marked paid in full, the system will continue to attempt to pull funds.

Auto-pay withdrawal date

By default, the withdrawal date for auto-pay is the Due Date on the Initial, Renewal, or Installment invoice. You can change the withdrawal date for a policy set up for auto-pay with the Withdraw Funds When feature on the Billing Setup tab of the Accounts Receivable screen.

Prepare system for auto-pay

You can set up electronic recurring automatic payments in BriteCore. To prepare for automatic payments, you must:

  • Set up the Pre-Authorization Payment Schedule.
  • Set up Direct Debit Letter/Form.
  • Determine your billing threshold, if any.
  • Provide access to the Direct Debit Letter/Form while quoting.

Set up Pre-Authorization Payment Schedule

Before you add customers to auto-pay, ensure that the Pre-Authorization Payment Schedule deliverable is set up in the system.

The Pre-Authorization Payment Schedule is a stock deliverable that you can customize. The Pre-Authorization Payment Schedule provides insureds with a summary of payment amounts and withdrawal dates for a policy on auto-pay.

  1. Navigate to Settings > Deliverables > Stock Deliverables. See Customize a stock deliverable for instructions.

Set up Direct Debit Letter/Form

You can create the Direct Debit Letter/Form in BriteCore or in another application, such as Microsoft Word.

  1. To create the Direct Debit Letter/Form in BriteCore, navigate to Settings > Deliverables > Custom Deliverables. See Add a custom deliverable for instructions.
  2. When the Direct Debit Letter/Form is complete, save a copy of the deliverable to your desktop. If you created the deliverable in BriteCore, select the Preview button in the Mass Deliverable Setup dialog box. The deliverable will open in a new window. You can download the deliverable from this window. 
  3. Navigate to Lines > Attachments, and then upload the deliverable to a folder titled Direct Debit Letter.

Establish billing threshold

A billing threshold determines when a bill will and won’t be issued, depending on the amount owed. If the amount owed on a policy falls below the billing threshold, then a bill won’t be issued. For example, if you establish a billing threshold of $5.00, then a policy that has a remaining amount owed of less than $5.00 won’t be billed. To establish the billing threshold in the Provider Administrator portal:

  1. Navigate to Settings > Modules > Policies.
  2. Select Edit under Policy Lifecyle. The Confirm dialog box will open with the following message

    You are about to leave the page. Would you like to save your data before proceeding?

    Select Yes to save the data and open the Policy Lifecycle screen. Select No to open the Policy Lifecycle screen without saving the data.

  3. Navigate to the Do Not Issue a Bill If the Amount Due is Less Than: setting under Options on the Billing tab.
  4. In the Dollars box, type the amount of your billing threshold.
  5. Select Save. A Confirm dialog box will display with the following message:

    Saving will overwrite your existing Lifecycle parameters in all Policy Types, continue?

  6. Select Yes to continue saving the changes you made.

Override billing threshold

The billing threshold impacts policies set up on auto-pay and policies that aren’t set up on auto-pay. You can override the billing threshold for policies on auto-pay with the setting Always Bill Auto Pay. Although Always Bill Auto Pay is located beneath the Do Not Issue a Bill If the Amount Due is Less Than setting, you can’t edit it. To use the Always Bill Auto Pay setting, contact your support team.

Provide access to Direct Debit Letter/Form

The Direct Debit Letter/Form isn’t a stock deliverable, but you can provide access for agents to the Direct Debit Letter/Form while quoting. To provide access to the Direct Debit Letter/Form:

  1. Navigate to Settings > Modules > Agent Portal > Payment > Other.
  2. In the Link to a form for the Agent/Insured to fill out in order to enroll in automated payments. setting box, input the link to the Direct Debit Letter/Form.

    Note: If you saved the Direct Debit Letter in Lines > Attachments, you can open the deliverable, copy the URL, and paste it into the Link to a form for the Agent/Insured to fill out in order to enroll in automated payments. setting box.

  3. Select Save.

Usage considerations

  • You can add a policy to auto-pay at any time during the policy term as long as the policy is changed to auto-pay at least three days before the date that the funds are scheduled to pull. See Manage automatic payments.
  • If you encounter an issue with a policy’s billing, such as an NSF, remove the policy from auto-pay. See Manage automatic payments.

    Note: If an auto-pay is NSF, when the payment method is updated, BriteCore will pull the funds even if the invoice due date has passed.

  • If a policy is paid in full and a mid-term endorsement is created that increases the policy’s premium, you must print and mail the amended invoice or process a one-time electronic payment against the policy. If you choose to process the one-time electronic payment, ensure you have the accurate ACH or credit card information on file.