Handling 3rd Party Payments

Last Updated: March 2025

 

Applies to:

• Accounting Users

• Admins

 

Overview

The 3rd Party Payments feature in BindHQ allows users to properly record payments when an insured or another entity pays a carrier directly instead of following the agency bill structure. This feature ensures that payments are correctly reconciled and that commission payments are properly accounted for.

 

When to Use 3rd Party Payments

Use this feature when:

• An insured mistakenly pays the carrier directly instead of the agency.

• A marketing company or third party processes the payment on behalf of the insured.

• A commission payment needs to be recorded when an overpayment has occurred.

 

Steps to Process a 3rd Party Payment

1. Select the Relevant Invoice and Payment

1. Identify the policy that received a direct payment from the insured.

2. Check both available checkboxes to include both the payable and receivable parts of the transaction.

2. Enter the Payment Amount

1. In the Amount field, enter the amount that was paid by the insured to the marketing company or carrier.

2. If the insured overpaid, the system will create an automatic journal entry to offset the invoice and bill.

3. Record a Receipt for the Commission Payment

1. If the marketing company or carrier has issued a commission payment, select the open balance checkbox.

2. Click Record a Receipt to ensure the commission is properly booked.

Example Scenario

• An agency bill policy was expected to be paid by the insured to the agency.

• Instead, the insured paid the carrier directly.

• The carrier then issued a commission payment to the agency.

• Using 3rd Party Payments, the user records the insured's payment, applies the commission payment, and offsets the invoice and bill to maintain accurate records.

Keywords for Search:

• 3rd Party Payments

• Accounting Transactions

• Commission Payments

• Direct Carrier Payments

• Overpayment Handling