Dwolla’s digital payment service provides a business with the flexibility to support multiple payment methods, whether it’s real-time payments, push-to-debit or ACH (Automated Clearing House). Take back more of your profits and offer bank transfers as a cost-effective payment option to meet the needs of your end users.
This resource explains payment timelines on Dwolla’s platform, including examples of in-network transfers, real-time payments, ACH bank transfers and push-to-debit transfers.
Note: All examples are Central Time.
A standard ACH transaction with Dwolla can look like this:
Standard ACH Debit: A standard ACH debit through Dwolla will be made available in the Dwolla Network three to four business days after the transfer is initiated. As a way of mitigating the risk of an ACH return, funds associated with a standard ACH debit are not made available within the Dwolla Network for three to four business days.
The reason? Dwolla is not typically notified of an ACH return until at least two business days after the transaction is initiated.
If a return is not received (and there are no concerns of fraud) within that window, funds are made available in the receiving account (in this case, the Dwolla Network).
Standard ACH Credit: After the funds are made available in the Dwolla Network, the “credit” to the recipient will take place. Assuming the ACH credit transaction is initiated prior to 4 p.m., funds will be in the receiver’s bank account on the following business day.
A bank transfer initiated from a sender’s bank account at 4 p.m. on Monday would be received by the recipient’s bank account on Friday morning. Transfers initiated after 4 p.m. will start the ACH processing timeline on the next business day.
The standard ACH processing time for bank to bank transfers is typically five business days.
Dwolla offers access to multiple types of account-to-account transfers as premium features within our payments platform.
Real-Time Payments are near instantaneous bank transfers that clear, 24/7/365. RTP transactions are sent individually—within seconds, using the RTP® Network. To complete a RTP® Network, both the sending and the receiving bank account must be held at a participating financial institution.
An RTP transaction through the RTP® Network is a push (credit) only payment. Funds are settled into the receiver’s bank account in real-time.
With the RTP® Network, the sender will get notified of a transfer’s completion and the receiver will see the funds posted to their account. Real-time payments are much like cash—except electronic.
Next Day ACH transfers refer only to the debit portion of the transaction.
With Next Day ACH, a transfer initiated before 4 p.m. on a Monday would be available within the Dwolla Network on Tuesday.
Same Day ACH transfers are available for the credit or debit portion of a transaction.
Same Day ACH transactions must be initiated prior to 11:59 a.m. to have funds arrive in the receiving bank account by the end of business that same day.
Send up to $100,000 using a Same Day ACH transaction.
Real-time payments with Dwolla happen when funds are sent between two Verified Customers that are holding a balance within the Dwolla Network.
Funds tied to these accounts can immediately be accessed by the end user.
Funds can be sent directly to a users’ debit card 24/7.
A business can make an instant payment with Dwolla’s push-to-debit feature by initiating a transfer from their Dwolla Balance to a debit card. Those funds are available to the user via debit card typically within 30 minutes.
On the Dwolla Network, an account-to-account bank transfer requires money going into the Dwolla Network and money going out of the Dwolla Network. Businesses can expedite each transfer by combining multiple transfer types. Each side of the transfer can use the payment method and timing that works best for their specific use case.
For example, a business could choose Same Day ACH to transfer funds into the Dwolla Network and RTP for the transfer out of the Dwolla Network and to the final destination bank account. When paired together, a business could achieve a bank-to-bank transfer within the same day.
It’s important to note that speeding up the payment does not shorten the window of opportunity for ACH returns. Same Day ACH transactions are not final, and while they do start the clock ticking for return codes sooner, there’s still a window where we cannot know if the bank account sending funds into the Dwolla Network will actually send those funds.
A return code can still arrive after a transaction has been processed, which means if the funds have already been transferred to a destination account using one of the faster payment options, the client sending those funds could lose them. According to Nacha rules, the filing window for most ACH Return Codes is 2 banking days.
Below are examples of some possible combinations of transfer speeds in and out of the Dwolla Network.
When a standard ACH bank transfer is initiated at 4 p.m. on Monday, if no ACH return codes are received by Thursday, funds are made available in the Dwolla Network on that day.
A Same Day ACH credit will go out at noon on Thursday, sending those funds to the receiver’s bank account. They will arrive in the receiving customer’s bank account by the end of business on Thursday.
When a standard ACH bank transfer is initiated by 4 p.m. on Monday, if no ACH return codes are received by Thursday, funds are made available in the Dwolla Network on that day.
On Thursday, a credit to the recipient will be issued and will settle in the receiving customer’s debit card instantly.
If a transfer is initiated at 4 p.m. on Monday, funds are made available in the Dwolla Network on Tuesday.
On Tuesday, the application initiates a standard ACH credit to the recipient, which will typically settle in the receiving bank account at the end of the business day on Wednesday.
A transfer initiated at 4 p.m. on Monday is made available in the Dwolla Network on Tuesday.
Assuming the Same Day credit is issued before 12 p.m. on Tuesday, funds will arrive in the receiving bank account by the end of the business day on Tuesday.
*Note: All transfers may be delayed by either the sending or receiving financial institution, including Dwolla’s partner financial institution.
If a transfer is initiated by 4 p.m. on Monday, funds are debited from the sending account and made available in the Dwolla Network on Tuesday.
On Tuesday, a credit to the recipient will be issued and will settle in the receiving customer’s debit card instantly.
A Same Day ACH debit transfer initiated by 11:59 a.m. on Monday would become available by 5 p.m. that same business day. Once the funds become available, a Dwolla user can initiate an RTP transaction through the RTP® Network (and performed by our financial institution partner), sending the funds in real time to the receiving bank account.