In Clio Payments, clients can pay bills and trust requests by eCheck, an Automated Clearing House (ACH) payment drawn directly from their US bank account. Knowing when an eCheck payment completes and what happens when one fails keeps your bills, bank records, and trust records accurate. The result is predictable deposits and a clear path to correct your records after a reversal.
eCheck payments are available to Clio Payments accounts in the United States and apply to every connected operating and trust account.
Note: Two-day eCheck timing is rolling out to existing Clio Payments accounts, and new accounts start with it. A banner on the Online payments page confirms when it is on for your account. Without the banner, eCheck payments take five to seven business days to process and deposit, and a payment becomes refundable once it is Completed. For questions about your firm's eligibility, contact Clio's Support team.
A payment moves through these states:
- When the client pays, the payment status is Authorized.
- Two business days after payment, the status changes to Completed. The payment applies to the bill or trust request at that point.
- Two to four business days after payment, funds reach your bank account.
- About four business days after payment, the client's bank usually confirms the payment.
- On rare occasions, the client's bank returns a payment after it completes. Learn more in the failed payments section below.
Note: Timing counts business days only. A payment made on a weekend, on a bank holiday, or after business hours starts processing on the next business day.
Understand failed eCheck payments
An eCheck payment fails when the client's bank returns it, for example, because of insufficient funds or incorrect account details. The timing of the return decides the outcome.
- Failed payment
The client's bank returns the payment before it completes.
- Reversal
The client's bank returns the payment after it completes, for example because of insufficient funds or an invalid bank account. A reversal is final and has no dispute process.
- Chargeback
Rarely, the account holder disputes the payment with their bank, for example as unauthorized. Learn more in Payment Disputes and Chargebacks.
Follow up on a failed payment
The status changes from Authorized to Failed. The bill or trust request stays unpaid, and your bank balance stays the same. You and your client each receive an email.
- Go to Online payments > Transactions.
- Click Failed.
- Find the payment.
- Note the client and amount.
- Contact your client to arrange another payment.
Resolve a reversal on an operating account
When a payment to an operating account fails after it completes, the bill returns to unpaid status, and the reversed amount is recovered from that operating account. The reversal updates three records:
- Online payments
The original payment status changes to Failed. A new Reversed row with a negative amount records the reversal under the Completed quick filter. Its description starts with Charge reversal for:.
- Invoice
The payment comes off the invoice, and the balance returns. payment split across invoices or matters reverses each share, and any overpayment reverses, too. An event on the invoice timeline records the reversal.
- Operating account
A reversing bank transaction posts, so the balance in Clio Manage matches the funds your firm received. The original deposit transaction stays in place. When the payment was not applied to an invoice, the reversal covers the full amount.
Understand fund recovery
Your firm's settlement type decides how the reversed amount comes out of your funds:
- Daily settlement
The reversal comes out of your next payout, so that deposit is smaller, or negative when the reversal is larger than the payout. During bank reconciliation, the payments in that deposit and the reversing transaction add up to the deposit amount on your bank statement.
- Monthly settlement
The reversed amount is debited directly from your operating bank account. During bank reconciliation, match the reversing transaction to that debit on your bank statement.
When the operating account has insufficient funds, the Clio Payments operations team contacts your firm to arrange another payment method, such as a wire transfer.
Collect the outstanding balance
- Contact your client to collect the outstanding balance.
- Record the new payment on the bill. Learn more in Record and Manage Online Bill Payments or Record Manual Bill Payments.
Resolve a reversal on a trust account
When a payment to a trust account fails after it completes, the full amount comes from your firm's primary operating bank account, the same way a chargeback on a trust payment works. Your trust account and trust records stay unchanged.
- The debit is labeled "PAYMENT REVERSAL CLIO" on your operating bank statement.
- The original payment changes to Failed, and a Reversed row records the reversal against the primary operating account.
- The trust request stays marked as paid, and the client's trust ledger keeps the original deposit. Your trust records and reconciliations stay intact, so your firm decides how to record the correction.
- An event on the trust request timeline records the reversal.
Important: After a trust reversal, your trust account still holds the client's deposit, and your operating account is short by the same amount. Trust accounting rules vary by state. Confirm the correction with your accountant or trust accounting advisor before you change any trust or operating records, especially when the funds are already disbursed or the period is already reconciled.
Tip: To reduce the risk of disbursing funds that later reverse, consider waiting until the client's bank confirms an eCheck trust payment, about four business days after payment, before you disburse from trust.
Correct your records after a trust reversal
- Ask your accountant or trust accounting advisor how to rebalance your trust and operating accounts.
- Record the correction your advisor approves in Clio Manage, so the client's trust ledger and matter trust balance stay accurate.
- Contact your client to collect payment another way. To request new funds, create a trust request.
Track reversals and refund eCheck payments
Reversal records are available in four places in Clio Manage, separate from dispute records.
| Location | Reversal details |
|---|---|
| Online payments page | A read-only Reversed row under the Completed quick filter |
| CSV and PDF exports | Type Charge reversal, status Reversed |
| Clio Payments reports | Included. Learn more in Clio Manage Online Payments Reports. |
| Sent to payment notification recipients. Learn more in Set Up Payment Notifications. |
Refund an eCheck payment
An eCheck payment becomes refundable once the client's bank confirms it, usually about four business days after the payment. An earlier refund attempt returns a message to try again later.
Up next
- Payment Refunds: Refund all or part of a completed payment.
- Payment Disputes and Chargebacks: Track disputes and chargebacks on card and eCheck payments.