ACH Payments: Processing Time vs. Bank Settlement

Modified on Thu, Apr 30 at 12:25 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

EventTimeframeWhat It Means
Funded by DealerWorksNext business dayDealerWorks funds the transaction the next business day. The status in DealerWorks updates from Pending to Approved.
ACH clearing house completes2–3 business daysThe ACH network fully clears the transaction. The payout date is visible in Accounting → Payout Report.

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 cannot be processed directly through the DealerWorks Reverse Transaction flow. If you need to refund an ACH payment, contact DealerWorks support at support@dealerworks.io. ACH refunds are handled on a case-by-case basis.

When contacting support, have the following ready:

  • The transaction ID or invoice number
  • The transaction date and amount
  • The reason for the refund
  • Whether the ACH status currently shows Approved or is still Pending

Note: Do not attempt to refund an ACH payment that is still in Pending status. Wait for it to reach Approved before contacting support for a refund.

Related: For a full list of transaction statuses and what they mean, see Understanding Transaction States in DealerWorks. For deposit reconciliation, see Understanding the Payout Report.

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