What Is a Returned Check?
A returned check is a check or electronic check payment that was accepted at the time of payment but later could not be completed by the patient’s bank. In Flywire, this usually applies to eCheck/ACH payments or manually entered check payments.
When a check is returned, the original payment is not deleted. Instead, Flywire records a separate return transaction that offsets the original payment and shows that the funds were not successfully collected.
Common Reasons for a Returned Check
A returned check may be appropriate when the bank or payment processor reports that the payment could not be honored. Common examples include:
- Insufficient funds
- Closed bank account
- Invalid account or routing information
- Stop payment placed by the account holder
- Account frozen or restricted
- Payment not authorized by the account holder
A returned check should not be used for normal refunds, same-day voids, credit card chargebacks, duplicate-payment corrections, or general billing adjustments.
How Returned Checks Are Processed in Flywire
When Flywire receives return information from the payment processor, Flywire creates a return transaction linked to the original check/eCheck payment.
Flywire then updates the payment history so staff can see both the original payment and the returned item. The return reduces or reverses the collected amount from the original payment.
If the returned payment was tied to a payment plan installment, Flywire may update the installment status. For example, if the installment had already been processed and the due date has passed, the installment may be treated as missed or past due.
Flywire also creates a returned-payment event so the return can be included in reporting, notifications, and host-system communication when configured.
How the EHR Host System Is Updated
When the client has a host-system integration, Flywire can send the returned check information back to the EHR or host system through the client’s configured outbound process.
The host system may receive details such as:
- Patient account number
- Returned payment amount
- Return date
- Original payment reference
- Check/eCheck return type
- Client-specific posting code or file value
- Remaining balance, when included in that integration
The EHR then uses its own posting rules to update the patient account. In most workflows, the host system should treat the returned check as a reversal or negative payment against the original payment.
Because EHR posting rules vary by client, the exact adjustment code, note format, and balance update depend on the client’s host-system configuration.
Staff Guidance
Use a returned check workflow only when the payment processor or bank confirms the check/eCheck did not clear. Do not remove the original payment manually. The return should be recorded as its own transaction so the account history remains accurate and auditable.
For client-specific training, confirm whether the returned check is posted automatically to the EHR or whether Billing/Revenue staff must review and post it manually in the host system.