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
  1. Billing Date Change (Customer Request)
  2. Renewal
  3. Reinstatement
  4. Non-Payment Balance Due
  5. Billing Vehicle No Longer Available
  6. Unpaid Options/Additions

Guidelines

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

Process

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



  2. Click Menu Options, then select Billing.

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



  4. Confirm the payment method on file is valid. Update as necessary and collect missing payments using one of the two processes based on your skill set: 
  5. Once the account is current, follow procedures to reinstate the contract (if applicable). 

Manually Calculate the Gap

 If the customer is billed through a mortgage or title company, the GAP amount may not be correct. In these cases, you must calculate the GAP amount manually.
  1. From the Billing Screen, click Payment Screen


    Info
     Check whether the payment method needs to be updated.
    If an update is required, make a note to return and complete the update after you manually calculate the GAP amount

  2. Click Payment History



  3. The Payments  View screen will display.
    1. Click Payment Preview to view the full history of the payments across the life of the contract.
    2. If the contract is older than 12 months, ensure all payments have been made over the 12 months.
    3.  Locate the current month and count back 12 months.  Look for any missing or partial payments.

      In the example below, the current month is January 2026
      The customer has made       12 payments between February 2025 and January 2026 (minus the deductible payments of 125)
      Therefore, the customer's       account is current. The GAP amount is $0. 



  4. In the event a GAP amount is identified, collect the missing payments and reinstate (if applicable). 

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
In the example above, the  Billing screen displays a GAP Amt of $54.95. After manually calculating the GAP, it's determined that the customer does not owe a payment. Therefore, the GAP amount is inaccurate and needs to be written off.
  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 FOR CALL field specifies that the one-time payment amount is being made for a gap payment and if applicable, the payment method was updated.




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