To simplify and automate the process of receiving ACH and wire transfer payments, Dappr uses a system of Virtual Bank Account Numbers (VBANs). This powerful feature assigns a unique bank account number to each of your customers, allowing Dappr to automatically identify who a payment is from and apply it to the correct invoices, eliminating the guesswork often associated with bank transfers.
This guide explains how VBANs work, how payments are automatically applied, how fees are structured, and the specific process for handling refunds for bank transfers.
How VBANs work
When you add a new customer in Dappr Sales, our system automatically generates a unique bank account and routing number for them with our partner bank. This VBAN is exclusively for receiving funds from that specific customer.
When you send an invoice with "Wire Transfer" enabled as a payment method, the customer will see their unique VBAN details on the hosted payment page, along with instructions for making the payment. Because the account number is tied to them, you no longer have to manually figure out which customer a bank transfer came from.
Automatic payment application
When Dappr receives a payment to a customer's VBAN, it runs through an intelligent validation process to apply the funds to the most relevant outstanding orders. This logic is designed to handle various payment scenarios automatically. Here is the process it follows:
Reference Number Match: If the transfer's description includes a 10-digit reference number that matches one of your customer's unpaid invoices, the payment is applied to that invoice. This is the most direct and reliable matching method.
Exact Amount Match (Outstanding Balance): If not, and the transfer amount exactly matches the remaining amount due on an unpaid invoice, it is applied to that invoice.
Exact Amount Match (Original Balance): If not, and the transfer amount exactly matches the original total of an invoice that has since been partially paid (e.g., by a credit note), it is applied to that invoice.
Any Outstanding Order: If no exact match is found, the funds are applied to any other unpaid invoice for that customer, typically starting with the oldest.
Overpayment: If there are no outstanding invoices, the entire (or remaining) transfer amount is added to the customer's VBAN overpayment balance.
The VBAN overpayment balance
If a customer sends a transfer that is larger than the total amount they owe across all their invoices, the leftover funds are placed in their VBAN overpayment balance. You can see this balance on the customer's dedicated page.
Important: Funds in the overpayment balance are not directly accessible to you and cannot be withdrawn. They act as a credit that will be automatically applied to the next invoice you issue to that customer. This is a separate balance from the customer's main "Credit Balance," which is used for credits from returns and pre-payments.
Important policy on overpayment balances
The VBAN overpayment balance is a temporary holding area and is not intended for storing customer funds for extended periods. It is your responsibility to reconcile this balance in a timely manner.
The best practice is to either:
Issue a new invoice to the customer as soon as possible, which will automatically draw from the overpayment balance, or;
Issue a refund to the customer if the overpayment was a mistake and no future purchases are planned.
If an overpayment balance remains unreconciled for 75 days, Dappr will begin the process of automatically returning the funds to the customer. To do this, Dappr or our payment processing partner may contact the customer on your behalf to obtain their bank account information.
If we are unable to obtain the necessary information from the customer to process the refund, the funds will be swept from the overpayment balance and transferred to your main Dappr Sales Balance on the 90-day mark. At this point, you become solely responsible for coordinating the refund with your customer directly. Crucially, this automatic transfer to your Sales Balance will not be reflected as a payment associated with the customer in Dappr Sales and will not be synced with Dappr Accounting.
To avoid this complex manual reconciliation process, it is highly recommended that you resolve any overpayment balances as quickly as possible, and no later than 75 days after the funds were received.
Fees for bank transfers
Fees for payments received via VBAN are structured to be transparent. It's important to note that fees are charged per application of funds to an invoice, not just on the incoming transfer itself.
Dappr Fee: A flat $2 fee for each payment applied to an invoice.
Payment Processor Fee: 0.5% of the applied payment amount, capped at $5.
Wire Transfer Fee: A flat $15 fee for each incoming wire transfer (both domestic and international). This fee is not charged for ACH transfers.
Let's look at a detailed example
A customer has an invoice for $100. They also have a $60 credit balance, which is automatically applied, leaving $40 due. The customer sends a $100 wire transfer. They also have another unpaid invoice for $25.
Here's how Dappr processes this:
A $15 wire transfer fee is charged to your Dappr Sales balance immediately upon receipt of the wire.
Dappr applies $40 to the first invoice to close it out. The fees for this portion are $2 (Dappr) + $0.20 (0.5% of $40), for a total of $2.20.
Dappr's system sees the customer has another unpaid invoice for $25. It applies the remaining funds from the transfer to this invoice. The fees for this second application are $2 (Dappr) + $0.13 (0.5% of $25), for a total of $2.13.
After both invoices are paid, there is still $35 left from the original $100 transfer ($100 - $40 - $25). This amount is added to the customer's VBAN overpayment balance to be used on future invoices.
Refunding bank transfer payments
Due to the nature of bank transfers, Dappr does not receive the sender's bank details, so direct, one-click refunds are not possible. Refunds for these payments must be processed manually and require more steps than a credit card refund.
Refunding via domestic ACH transfer
First, you must issue a credit note for the invoice you are refunding. This is a critical step to correct your sales records and create a credit on the customer's account.
If you do not have the customer's account and routing number, you will need to contact them to obtain these details.
Navigate to the customer's dedicated page (
Sales > Customers > Select customer) and scroll down to the "Credit balance" section. You should see a positive balance from the credit note you just issued.Click Issue refund. In the pop-up, enter the customer's banking information and the refund amount, then click Send refund via ACH. The funds will be sent from your Dappr Financial Account, so you must ensure you have a sufficient balance.
Refunding international wires and overpayments
Refunding an international wire transfer or a VBAN overpayment balance requires assistance from the Dappr team due to the complexities of international banking and the segregated nature of overpayment funds.
For International Refunds: In the "Issue manual refund" pop-up, click the Issue international refund link and complete the form with all known details.
For Overpayment Refunds: On the customer's dedicated page, find the "Overpayment" line and click the Issue refund button next to the balance amount. Complete the form.
In both cases, a Dappr team member will begin working on your request within two business days. They may contact you or the customer directly if additional information, such as intermediary bank details, is needed to process the refund. By submitting the request, you authorize Dappr to contact the customer on your behalf for this purpose.