topic Re: eCheck Settlement and money transfer in Integration and Testing

eCheck Settlement and money transfer

EddieLascu88CNP — Wed, 05 Nov 2014 15:59:49 GMT

I have a few questions regarding eChecks that I need to answer for my client. So I know that eCheck transactions are not settled for the Sandbox account I setup. But I understand that in the production environemnt, all eCheck transactions will be settled daily and the settlement process starts at 8:30 AM Pacific Time. From the same link (https://support.authorize.net/authkb/index?page=content&id=A554&actp=LIST) I understand that the money transfer between banks is initiated after the batch is closed. I also understand that money can take anywhere from 3 to 7 business days to move from one account to the other, depending on the banks that are involved in this transfer and the relationship between them.

The question that I was asked, what if the bank account linked to the payment profile that was used in the transaction does not have sufficient funds? For Credit Cards, this is known instantly and the transaction is declined, but for eChecks the transaction can take longer to decide whether it is successful or it fails.

How will my client be notified that an eCheck transaction failed because of whatever reasons, insuficient funds or something else? Initially the transactions seem to be approved so the system that I build assumes that all is fine. We need to build in functionality to retrieve all eCheck transactions that fail to clear and react accordingly to that. How will my client be notified by Authorize.Net that a certain eCheck transaction failed several days after the transaction was issued and presumed successful?

TIA,

Eddie

Re: eCheck Settlement and money transfer

EddieLascu88CNP — Wed, 05 Nov 2014 16:10:34 GMT

I have been looking at the Reports functionality in the Sandbox and I see there are 3 reports for Returns. I believe these are the tools used to find out which eCheck transactions fail. In the correct language, these are called "chargebacks", I believe.

Which is the programming API that allows me to run these reports? Can this even be done automatically or just manually on the Web Portal?

Re: eCheck Settlement and money transfer

RichardH — Wed, 05 Nov 2014 16:36:27 GMT

Hello @EddieLascu88CNP

What you are looking for are the eCheck return codes available in the Transaction Details API. See this blog post as well.

A chargeback is when an account holder claims they did not authorize a transaction.

Richard

Re: eCheck Settlement and money transfer

EddieLascu88CNP — Wed, 05 Nov 2014 16:58:13 GMT

Hi Richard,

I was interested in eCheck transactions (payments done with a profile linked to a bank account) that generate chargebacks. As I understand, an eCheck can be approved initially, but then, after being sent for settlement, several days later, can generate a chargeback. I wanted to know if there is any way to find out automatically, via an Authorize.Net API, about these returns.

I found an older post by Michelle that says there is no way to do that at this time:

http://community.developer.authorize.net/t5/Integration-and-Testing/Any-indication-that-a-transaction-has-been-returned/td-p/20371/page/2

So my client will have to use their Merchant Interface Web Portal and run the Return Reports that are available. The frustrating part is that, as I uunderstand, for an eCheck batch, they can get chargebacks up to 7 or even 10 business days later. So they will have to continously check to see if a new chargeback has been posted.

Thanks,

Eddie

Re: eCheck Settlement and money transfer

RichardH — Wed, 05 Nov 2014 17:26:54 GMT

As I mentioned before, the Transaction Details API now offers eCheck return data as you described and allows you to check the status programatically instead of using the Merchant Interface.

I updated the previous post to also include this information.

Richard

Re: eCheck Settlement and money transfer

EddieLascu88CNP — Wed, 05 Nov 2014 19:41:37 GMT

So for how long do you recommend the Transaction Details should be checked for an eCheck transactions in order to make sure that no chargeback is issued? Your blog post does not specify anything about this. Presumably, the chargeback can occur 4, 5, 6 or even 7 business days after the ofiginal transaction was issued.

Also, in the blog you mention that the return codes are available using the Transaction Details API XML Interface. How about the SOAP one? We are using the SOAP Interface.

Thanks,

Eddie

Re: eCheck Settlement and money transfer

EddieLascu88CNP — Wed, 05 Nov 2014 19:46:17 GMT

I am sorry, I keep using the "chargeback" term in the wrong context. What I meant to say is for how many days after the original eCheck payment should we look at the transaction details to see that no return (is that what I should call it?) is made. I am thinking of the scenario where the bank account does not have sufficinet funds for the payment. In that case, the bank that holds the account will issue a what, return? Is that what's called in the banking industry?

The transaction details would contain, in that case, the code of the return.

Re: eCheck Settlement and money transfer

Joy — Wed, 05 Nov 2014 20:13:53 GMT

Hi EddieLascu88CNP,

Most return types are automated and will happen within a day of the transaction reaching the customer's bank. For the "unauthorized" return type (similar to a chargeback), a personal account holder can dispute the transaction for up to 60 days of when it hits their account.

Thanks,
Joy

Re: eCheck Settlement and money transfer

EddieLascu88CNP — Wed, 05 Nov 2014 21:21:31 GMT

Hi Joy,

Thanks for your reply. I guess checking for return for 7 business days should cover for any eventuality. My other question still left unanswered is whether the Transaction Details SOAP API will also include the return codes for eCheck returns.

Thanks,

Eddie

Re: eCheck Settlement and money transfer

RichardH — Wed, 05 Nov 2014 22:06:55 GMT

Yes, it will work for either SOAP or XML. :)

I hope this helps.

Richard

Re: eCheck Settlement and money transfer

EddieLascu88CNP — Thu, 06 Nov 2014 15:52:12 GMT

Yes, it does. Thank you so much for your help.

Re: eCheck Settlement and money transfer

Dani — Thu, 24 Aug 2017 17:34:27 GMT

I am trying to find someone who is familiar with eCheck.net and integrating that into a Bigcommerce store. Not sure where to turn for that person and stumbled upon this discussion group.

Any reccommendations?

Thank You,

Dani