Funding times for ACH and Credit

Created by Richard Moore, Modified on Tue, 16 Jan 2024 at 10:56 AM by Richard Moore

Funding File processing times for ACH and Credit


What is the cut off time Dwolla sends the ACH file to the bank for processing? 

Cut off time is 2:00PM PST for standard and next day funding

What is the cut off time for credit card processing?

Cut off time is 6:00PM PST for credit card processing

When does a transaction change from “captured” to “settled”?

“Settled” is a term specifically for credit card transactions. For ACH transactions, we provide status change notifications made available via webhooks based on return codes.

Transaction Statuses

Below is a summary of the possible values that can be shown in the transaction status field covering both credit cards and ACH transactions:

  • captured - capture performed on this transaction, captured flag is true , card transactions only
  • refunded - refund performed on this transaction, refunded flag is true , card transactions only

  • voided - void performed on this transaction, voided flag is true

  • settled - settled flag marked as true, card transactions only, 

    • Note: A card transaction can be voided if “settled” : false

  • completed - approved flag is true, the transaction got approved by the gateway (card transactions)

  • awaiting-payment - when an order was created to be paid with ExactJS and has not yet been paid

  • failed - sentToBank flag is false

    • when something failed before sending the transaction to Elavon (card transactions)

    • when the transaction was created in Exact’s system successfully, but  not initiated in Dwolla’s system, and therefore failed to be processed (ACH transactions)

ACH Transfers can have the following statuses: 

  • pending - A pending transfer hasn't been sent to the payment network or has been sent but not processed. This means that it may still be cancellable or may result in a transfer failure.  An ACH transaction can be canceled or ‘voided’ if “status” : pending
  • processed - The meaning of a "processed" status varies based on the transfer destination. If it's going to a Dwolla Wallet, the funds have cleared successfully. If it's going to a linked bank account, enough time has passed for the funds to clear into that account.

  • canceled - A transfer can be canceled in two ways: either Dwolla cancels it systematically, or your application sends an API request. If a funding source is removed during the transfer's journey to that bank account, Dwolla will cancel the transfer.

  • failed - A failed status is associated with an ACH network return, meaning that Dwolla received an ACH return code from the RDFI (Receiving Depository Financial Institution). You can fetch the failure reason via an additional API request.

  • funded - when the funding file has been sent for funding merchant accounts.

A Standard ACH debit from a bank to the Dwolla Network processes within 3-4 business days. Next day transfers process within 1-2 days.  This extended processing time accounts for ACH returns and processing delays, and checks on common return codes like insufficient funds and invalid bank accounts.

Standard ACH Debit Transfer Schedule

*Dwolla cannot guarantee an exact deadline for transmission of ACH files. Please be mindful that these are target cut-off times for transfer processing.



How do we indicate/determine that a transaction should be “Next day transfer”?

The Next Day ACH transfer account setting can be enabled on an account-level basis for merchants and users that send funds on your application.

Once obtaining approval, merchants will gain capability for Next Day ACH transfers into the Dwolla Network. Once activated, Next Day ACH is the default processing speed for all ACH debits.

Will “Next day transfer” check for return codes?

When a bank transfer failure occurs, there is a subset of systematic actions Dwolla our ACH partner may take on the Customer and/or the funding source based on the ACH return code. We recommended to have an active webhook subscription, which is used to listen for events relating to any Customer or funding source state change.

How long does a settled payment stay refundable? Is there a specific time frame in your vendor rules? 

  • ACH credit transactions are not supported at this time. 

  • For credit cards the refund time frame is at the merchant’s discretion, and usually anywhere from 1 week to 6 months.


Do we charge a fee for a refund transaction?

  • For credit cards, refund costs are based on the pricing schedule and assessed the same fees as authorization or sale transactions.

  • ACH credit transactions are not supported at this time. 



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