ACH Payments: Processing Time vs. Bank Settlement

Modified on Fri, Jun 12 at 1:25 PM

ACH Direct Debit payments involve two separate timeframes that are easy to confuse: when the status updates in DealerWorks, and when the funds actually reach your bank account. These are not the same event.

Two Separate Timeframes

Event	Timeframe	What It Means
Funded by DealerWorks	Next business day	DealerWorks funds the transaction the next business day. The status in DealerWorks updates from Pending to Approved.
ACH clearing house completes	2–3 business days	The ACH network fully clears the transaction. The payout date is visible in Accounting → Payout Report.

Important — Do not reprocess a Pending ACH transaction. A status of Pending is normal — it means the payment is in transit through the ACH network. Reprocessing it will create a duplicate charge to the customer. The status should update by the next business day.

What "Approved" Means for ACH

When an ACH transaction shows Approved in DealerWorks, it means DealerWorks has funded the transaction. The ACH clearing house process takes 2–3 business days to fully complete, so the funds may not be reflected in your bank account immediately even after the status updates.

To confirm when a deposit hit your bank, check Accounting → Payout Report.

ACH Refunds

ACH refunds can be processed using Reverse Transaction, but only after the payment has been Approved for at least 5 business days. This waiting period is required because ACH transactions take time to fully clear the banking network — reversing too early can cause processing errors.

To refund an ACH payment:

1 Wait until at least 5 business days have passed since the transaction status changed to Approved.
2 Go to Reporting → Transactions, locate the transaction, and use the three-dot menu to select Reverse Transaction.
3 Enter the refund amount and reason, then confirm. The refund will be processed back to the customer's bank account over 3–5 business days.

Note: Do not attempt to reverse an ACH payment that is still in Pending status. Wait for it to reach Approved and then allow the additional 5-business-day hold before reversing. If you need to reverse sooner or encounter issues, contact support@dealerworks.io with the transaction ID and date.