By: John Jackovin,

At Dwolla, our goal is to make ACH transactions easier for our partners to manage. Managing ACH returns has long been a point of frustration for anyone using the ACH network, let alone for partners using our Access API.

We’re excited to share that we’re leading the way with new functionality making it easier than ever to manage ACH returns. In short, here is what’s new:

Understanding the situation

In the world of ACH payments, failed transactions are a fact of life. Reasons a transaction might fail can range from the typical (Insufficient Funds) to the obscure (Return of XCK entry). Whatever the specific reason, they do happen.

Currently, in the fintech industry, there are very few truly effective ways to manage these failures—in fact, we’ve heard from our partners that there aren’t really any good solutions. ACH returns are treated as an external, one-off problem, left to the companies using the network to deal with. They have to figure out why it happened, what exactly happened, and even how to fix it.

At Dwolla, we’ve changed that process.

We’ve been doing some research at Dwolla. Our Product and Engineering teams have gone through an extensive process to understand the reasons for ACH failures and determining what actions should be taken based on those reasons for failure. Finally, the last step in the research was understanding the best way to provide Access API Partners with the ability to rectify the situations caused by those failures.

Dwolla is making it easier to manage failed ACH transactions

We’ve made some enhancements to the Access API to improve return code management. These new enhancements allow us to fine-tune actions based on why failures are occurring, in turn, helping reduce risk for our customers, but also provide them the greatest level of business continuity.

Dwolla has enhanced the API to allow Partners to deactivate a customer, but they can also now reactivate customer accounts as well. These enhancements put some of the decision making and control in the hands of our Access API Partners.

We believe that you’re the expert on your Access API integration, and each time we make an improvement like this you get more control and impact on your customer’s journey.

The addition of reactivation gives our partners the ability to resolve many of the situations caused by failed ACH transactions. Now Partners can reactivate an account, get back the money they’re owed and reconcile that user’s account balance.

And the “cherry on top” is that all of this functionality is now available right within the Dashboard!

Easing the process for Partners

Providing this added functionality within the Dashboard means our Access API Partners don’t have to start from scratch in building processes and internal systems to manage returns or failures. Now, based on a customer’s status, Partners can easily activate and deactivate customers as needed.

Additionally, we have split out the customer’s verification status (active or deactivated) from the bank account status (verified, unverified, or removed). This provides a better understanding of a customer’s ability to accept or receive transactions.

We believe these changes will make a serious impact on our Partners’ ability to resolve failed transactions, and in-turn makes their day-to-day payments operation more fluid and effective.  

Stay tuned, these changes are just the start to our ever-pursuant goal of making Dwolla’s Dashboard the standard in ACH transaction management.

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Financial institutions play an important role in the Dwolla network.

Dwolla, Inc. is an agent of Veridian Credit Union and Compass Bank and all funds associated with your account in the Dwolla network are held in pooled accounts at Veridian Credit Union and Compass Bank. These funds are not eligible for individual insurance, including FDIC insurance and may not be eligible for share insurance by the National Credit Union Share Insurance Fund. Dwolla, Inc. is the operator of a software platform that communicates user instructions for funds transfers to Veridian Credit Union and Compass Bank.