Gap Payment Process

Gap Payment Process

Gap Payments are calculated when there is a cancellation, pending cancellation, reinstatement, or renewal. The payment is used to collect funds when payments are missed due to:
  1. Refinance
  2. Home Paid Off
  3. Service Transfer/Client Change
  4. Billing Mechanism Changed
  5. Upsell/Downsell
  6. CC/ACH/DDA Rejection
  7. Billing Date Change (Customer Request)
  8. Renewal
  9. Reinstatement
  10. Non-Payment Balance Due
  11. Billing Vehicle No Longer Available
  12. Unpaid Options/Additions

Guidelines

Warning
Gap Payments must be collected BEFORE renewing or reinstating a contract.
If there is a gap due and the customer wants to cancel their contract, customer service agents must transfer the customer to Retention or Cinch Real Estate.
Warning
Standard retention efforts are required when an opportunity is present.

Calculating A Gap Payment

  1. On the Enrollment Form screen, identify:
    1. The Effective Date (in the Eff Date field).
      1. The Effective Date is usually 30 days past the Enrollment Date.
    2. Whether the account is Current or Past Due (in the Billing Status field).



  2. Click Menu Options, then select Billing to open the Billing Details.

  3. Identify the Bill Date, Bill Amount, and Gap Amount.

  4. Click Exit to close screen.


  5. Back on the Enrollment screen, click Payment. The Make A Selection pop-up will display.

  6. Click the drop-down arrow and select View Payment Plan/Billing Mechanism or Update Payment Plan/Billing Mechanism, then click OK.


  7. The Payment View screen will display.

  8. Ask the customer to confirm the payment method that should be on file. Update as needed BEFORE collecting the Gap Payment, then click Payment History.



  9. The Payment Preview screen will display. Click Payment Preview to view the full history of the payments across the life of the contract.
    1. If the contract is older than 12 months, ensure all payments were made over that period. Look for any missing or partial payments.
    2. If the contract is billed through a Title Company, it could be delayed up to 90 days after the Effective Date.
    3. If the contract is billed through a Mortgage Company, it could be delayed between 90-120 days after the Effective Date.



  10. Identify if the contract is billed through ACH, DDA, Credit/Debit Card or if it’s billed through a Mortgage or Title Company.
    1. If ACH, DDA, or Credit/Debit Card:
      1. Calculate the time between the Effective Date and the Current Date.
        1. This is used to determine the Gap Payment owed.
      2. Confirm the total number of payments is equal to what would be 12 equal payments up to that point.
      3. This amount is usually displayed in the Gap Amt field on the Billing Detail screen.

Manually Calculate the Gap

  1. If Mortgage or Title Company:
    1. Calculate the time between the First Bill Date and the Current Date (this is used to determine the Gap Amount owed).
    2. Confirm that the total number of payments made matches the number of months completed
       in the 12-month billing cycle.

      InfoExample: Today’s date is 7/29/2025. The customer’s first bill date was 7/1/2024, and payments were made through 5/1/2025.
      That means 10 payments have been made.       Two payments remain in the 12-month cycle; this is the Gap Amount. 
             Payments for June and July must be collected before the contract is reinstated.      .
​11.  If a gap amount is identified, Process A One-Time Payment.

Noncash Request

Mortgage Payments are billed in arrears and may be delayed. This delay must also be factored into the calculation. Sometimes it may be necessary to submit a request to A/R to noncash (write-off) the gap amount.
  1. If the past-due payments are beyond the 12-month billing cycle, the customer's account should reflect a "Current" status.
    In this case, submit a QuickBase Billing follow-up.
Info
Example: The first bill date was 7/1/2024, and we have all 12 payments; however, SCM shows a gap amount balance. The gap amount is inaccurate.
  1. In the Comments field of the QuickBase request, enter: "12 payments received on the account. Please noncash <Amount."

NotesUse the Note Template to enter notes in the Communication History Log. Ensure the REASON DETAILS field specifies the one-time payment amount is being made for a gap payment.




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