Status Flow Overview

Understanding how transactions move through different statuses is critical for proper integration and customer communication.

Standard Transaction Flow

flowchart TD
    A@{ shape: circle, label: "POST" } --> B(Accepted)  
    A --> C(((Error)))
    B --> D(Originated)
    B --> E(((Void)))
    D --> F(((Settled)))
    D --> |Normal Return| G(((Return)))
    F --> |Late Return | G

Timeline

---
config:
  logLevel: 'debug'
  theme: 'forest'
---
timeline
    title Payment Timeline For 3 Day Hold
    Monday [Day 0] : $100 Payment ACCEPTED before 6:00 PM ET.
          : ORIGINATED at 6:00 PM ET.
    Tuesday [Day 1] : Hold Day 1. Customer sees $100 DEBIT in online banking. 
    Wednesday [Day 2] : Hold Day 2.
    Thursday [Day 3] : Hold Day 3.
          : SETTLED at 6:00 PM ET.
    Friday [Day 4] : Merchant sees $100 CREDIT in Online Banking.

Processing Windows

Transactions are processed at specific times throughout the day (Eastern Time). The availability and cost of each window depends on the merchant's underwriting status.

Window Details

Same-Day Windows (8:00 AM & 12:00 PM ET)

📘

Important: These are same-day origination windows, NOT same-day settlement windows

• Transactions submitted before these cutoffs are originated the same business day
• For Payments, the customer's account is debited the same day, but settlement to the merchant still takes 3 business days
• Requirements: Merchants must be specifically underwritten for same-day ACH processing
• Cost: Additional fees apply
• Use Case: Time-sensitive debits that need to be pulled from customer accounts the same day

Standard Next-Day Window (6:00 PM ET)

• This is the default processing window for all merchants
• Transactions in Accepted status are originated after this cutoff
• For Payments, funds are debited from customer accounts the next business day
• Settlement to merchant occurs 3 business days after origination
• Cost: Standard pricing - no additional fees

New Next-Day Window (9:00 PM ET)

• Status: Coming soon
• Later cutoff time for merchant flexibility
• Cost: May incur additional fees
• Provides merchants an extra 3 hours to submit transactions for next-day processing

Same-Day Settlement vs Same-Day Origination

Important Distinction:

• Same-Day Origination (8 AM/12 PM windows): Customer is debited the same day, but merchant still waits 3 days for settlement
• Same-Day Settlement: Merchant receives funds the same day the customer is debited

Need Same-Day Settlement or Faster Funding?

• If your merchants require same-day settlement (true same-day funding) or other expedited funding options, please contact the VeriCheck sales team to discuss available solutions and pricing.

Important Notes

• Underwriting Required: Merchants cannot access 8:00 AM or 12:00 PM windows without completing additional underwriting requirements
• Void Deadline: Merchants can only void transactions before they are originated at their designated window
• Weekend/Holiday Impact:
  • ACH does not process on weekends or federal holidays, so transactions will be originated on the next business day
  • Federal Holidays: The Federal Reserve observes specific holidays when ACH processing does not occur.
    • View the official list of Federal Reserve Holidays.
    • The Federal Reserve publishes holidays for the upcoming 5 years at a time.
  • Holiday on Saturday: If a federal holiday falls on Saturday, the Federal Reserve is open for ACH processing on the preceding Friday and subsequent Monday.
  • Holiday on Sunday: If a federal holiday falls on Sunday, the next day (Monday) is observed as the holiday. The Federal Reserve is closed Monday and no ACH processing originates or settles. Transactions can still be created but will originate/settle on Tuesday.
  • Settlement Impact: Each weekend day or holiday extends settlement timeline by 1 day.

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Status Definitions

Accepted

Description:

The transaction has been created by the Merchant on the VCI system and is queued to be submitted to the Federal Reserve. Transactions in this status are scheduled for the next available processing window based on the merchant's configuration (generally 6:00 PM ET).

When This Occurs:

Within seconds of successful API call or transaction creation.

Useful Attributes:

• created_at - Timestamp when the transaction was created.

Originated

The transaction has been submitted to the Federal Reserve to debit the source bank account. At this stage, the transaction is considered "in-flight" and cannot be voided. The source bank account will see a debit transaction on their bank statement the following business day.

Useful Attributes:

• originated_at: Timestamp when the transaction was originated.

Settled

The transaction has completed and a credit has been issued to the recipient's bank account. The recipient will see a credit entry on their bank statement on the following business day.

Useful Attributes:

• settled_at: Timestamp when the transaction was settled.

Return

The transaction was rejected by the recipient's bank for various reasons such as Insufficient Funds, Bank Account Not Found, Account Closed, Unauthorized Debit, or Customer revoked Authorization.

Useful Attributes:

• returned_at: Timestamp when the transaction was returned.
• return_reason: Description of the reason for the transaction return.
• return_code: Three character code of the reason for the transaction return. Examples: R01, R02, R03.

List of Return Codews

Error

The transaction was immediately rejected at the time of request by the VCI system due to issues such as insufficient or incorrect data, exceeded merchant velocities, or known problematic customer bank accounts.

Useful Attributes:

• errored_at: Timestamp when the transaction marked as Errored.

Void

The transaction was canceled by the Merchant. This can only occur if the transaction is still in the Accepted status and has not yet been Originated. Merchants have until the cutoff to cancel any transactions that are still in the Accepted status.

Useful Attributes:

• voided_at: Timestamp when the transaction was canceled.