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Transfer Processing Times #

Bank-to-bank transfers #

When utilizing Dwolla to facilitate bank-to-bank transfers, you can see that there are two steps involved in the movement of funds between banks:

  • ACH Payment In (Debit) - Funds moving from the source bank account into the Dwolla Network.
  • ACH Payment Out (Credit) - Funds moving into a destination bank account from the Dwolla Network.

Let's illustrate the movement of funds for a bank-to-bank transfer in the diagram below.

ACH transfer timeline

Bank Into Dwolla Network (ACH Payment In) #

Transfers into the Dwolla Network from a bank, including transfers that pass through the network (balance) to another Customer’s bank account, can be canceled up until the transfer is exported out of the Dwolla Network. To determine if a transfer is eligible for cancellation, Dwolla will return a cancel link on the transfer resource. The export cut off time for Standard and Next-Day ACH transfers is 4 p.m. Central Time. The export cut off time for Same Day ACH is 12 p.m. Central Time every business day.

Note: This is not a hard cut off. Occasionally, the export out of the Dwolla Network may be delayed or could take time to process, causing transfers created some time after the cut off to be exported in the same batch. We recommend that you use the cancel link returned on the transfer resource to determine if a transfer is cancellable rather than relying on the export timing.

ACH payment in (Debit)- Standard ACH clearing

Standard ACH transfers from a bank to the Dwolla Network will take 3-4 business days to settle. ACH is known as a next-business day settlement system, however, to account for ACH returns and processing delays by financial institutions the processing timeline is extended. With this ACH processing, funds can be held for 3-4 days to allow for checks on common return codes; including insufficient funds and basic checks for valid bank accounts. If during ACH processing a failure is discovered as funds are held, the transfer will fail and be marked with a return code. To learn more about the various ACH return codes that can be returned systematically on a transfer failures, take a look at our transfer failures developer resource article.

ACH Debit transfer timeline Standard
ACH payment in (Debit) - Next Day ACH clearing

Dwolla offers expedited clearing into the Dwolla Network from a bank account. Using next-day ACH transfers, funds will be made available in the Dwolla Network 1-2 business days after the transfer is created. Next-Day ACH transfers are an account setting that can be enabled on an account-level basis for you and users that send funds on your application. After receiving proper approval from Dwolla, we will enable transfers into the Dwolla network as next-day. In the case where you would want to slow down the availability of incoming funds to standard ACH, you will need to specify this in the API transfer request. To learn more on how to set transfers to the default standard processing, refer to the clearing object in our API Reference Docs.

Warning
With Next Day ACH enabled, transfer processing is expedited, meaning that checks for common return codes may not be processed until a later time. This also means that the risk of losses incurred from return codes is higher.
ACH Debit transfer timeline Next Day
ACH payment in (Debit) - Same Day ACH clearing

Dwolla offers expedited clearing into the Dwolla Network from a bank account. Using same-day ACH Debit transfers, funds will be made available in the Dwolla Network on the same business day. For instance, if a Same Day Debit transfer is created prior to 12 p.m. Central Time, the funds will be available in the Dwolla Network by the end of that business day. Same Day Debit transfers are an account setting that can be enabled on an account-level basis for debit transfers. After receiving proper approval from Dwolla, you can create a Same Day Debit on a per-transfer basis by specifying this in the clearing object of an API transfer request.

Refer to the clearing object in our API Reference Docs for more information.

ACH Debit transfer timeline Same Day

Dwolla Network Out To Bank Account (ACH Payment Out) #

Transfers out of the Dwolla Network can be canceled at any point until 4 p.m. Central Time on that same business day if the transfer was initiated prior to 4 p.m. Central Time. If a transfer was initiated after 4 p.m. Central Time, it can usually be canceled anytime before 4 p.m. Central Time on the following business day. To determine if a transfer is eligible for cancellation, Dwolla will return a cancel link on the transfer resource.

ACH payment out (Credit) - Standard ACH clearing

Standard clearing time out of the Dwolla Network to a bank takes 1-2 business days to settle. If a transfer is created prior to our 4 p.m. cutoff time, the funds will be sent through the ACH Network for processing. Transfers created after our 4 p.m. cutoff time will result in the funds being processed out of the Dwolla Network the following day.

ACH Credit transfer timeline Standard Day
ACH payment out (Credit) - Same-Day ACH clearing

Upgrading exports out of the Dwolla Network to a bank using Same-day ACH clearing will push funds to the destination bank on the same day. For instance, funds moving out of the Dwolla Network prior to 12 p.m. Central Time will be available in the recipient’s bank account by the end of the day.

ACH Credit transfer timeline Same Day

For more information on Same Day ACH, reference our Concept article which explains Same Day Debits and Credits in full detail.

Clearing example #

In this bank-to-bank transfer request example we have next-day ACH enabled, but we want to slow the transfer clearing into the Dwolla Network back to standard ACH. However, we feel comfortable letting this transfer export out of the Dwolla Network with same-day ACH clearing to the destination bank.

json
{
  "_links": {
    "source": {
      "href": "https://api-sandbox.dwolla.com/funding-sources/9615fc1d-8855-4ac2-ab11-e5469c66c8e8"
    },
    "destination": {
      "href": "https://api-sandbox.dwolla.com/funding-sources/b2d83ee5-5834-4cb7-9820-98149aff5063"
    }
  },
  "amount": {
    "currency": "USD",
    "value": "10.00"
  },
  "clearing": {
    "source": "standard",
    "destination": "next-available"
  }
}
For more information on Same Day ACH, reference our Concept article which explains Same Day Debits and Credits in full detail.

Total time to Processed #

The scenarios in the table below outline the total processing time for a given bank-to-bank transfer.

Customer to Customer Bank Transfers

Bank Account to Dwolla Network ClearingDwolla Network to Bank Account ClearingTime to Dwolla NetworkTime to Destination Bank AccountTotal time to processedStandardStandard3-4 business days1-2 business days4-6 business daysStandardSame-day3-4 business days0-1 business days3-5 business daysNext-dayStandard1-2 business days1-2 business days2-4 business daysNext-daySame-day1-2 business days0-1 business days1-3 business daysSame Day ACHStandard ACH0-1 business days1-2 business days1-3 business daysSame Day ACHSame Day ACH0-1 business days0-1 business days1-2 business days

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Financial institutions play an important role in our network.

Dwolla, Inc. is the operator of a software platform that communicates user instructions for funds transfers to our financial institution partners.

Dwolla is an agent of Veridian Credit Union. All ACH and Wire transfers are performed by Veridian Credit Union. Your Dwolla Balance, if any, is held in one or more pooled holding accounts held by Veridian Credit Union. These funds may not be eligible for share insurance by the National Credit Union Share Insurance Fund.

Sponsorship and Settlement of Push-to-Debit payment services provided by MetaBank®, N.A.
Push-to-Debit payments are typically available within 30 minutes.

Real-Time Payments are performed by Cross River Bank, which holds funds on behalf of the Receiver of such transactions in one or more pooled custodial accounts. These funds are not subject to FDIC pass-through deposit insurance.