2009
Table Of Contents
- Contents
- Signing Up for Payflow ACH Payment Service
- About ACH Payments
- Summary of Authorization Requirements
- How Payflow ACH Payment Works
- ACH Payment Flow
- Timetable for a Typical ACH Payment
- Example of a Successful Business-to-Business Debit/Sale Payment
- Example of a Business-to-Business Sale/Debit Payment With a Customer Return Within Three Posting Days
- Example of a Business-to-Consumer Sale/Debit Payment With a Customer Return After Three Posting Days
- Example of a Successful Business-to-Consumer Credit Payment
- Example of a Business-to-Consumer Credit Payment With a Customer Side Return
- ACH Payment Types
- Retrying Returned Payments
- Notifications of Change
- Using PayPal Manager to Perform ACH Payments
- Using the Payflow Pro SDK to Perform ACH Payments
- Testing ACH Payments Using the Payflow SDK
- Responses to ACH Payment Requests
- Index
Payflow ACH Payment Service Guide 25
4
How Payflow ACH Payment
Works
This chapter describes Payflow ACH Payment in detail.
In This Chapter
z “ACH Payment Flow” on page 25
z “Timetable for a Typical ACH Payment” on page 26
z “ACH Payment Types” on page 29
z “Retrying Returned Payments” on page 30
z “Notifications of Change” on page 31
ACH Payment Flow
PayPal breaks each debit or credit payment into two parts—one with the customer/target bank
account, and one with your bank account.
To help manage returns, a three-business-day delay is typically used between the parts of the
payment. You and PayPal agree to this period when setting up your Payflow ACH Payment
account.
For example, if you submit a Debit/Sale payment against a customer’s bank account, PayPal
submits an ACH payment to debit the customer’s bank account at the first available
opportunity. Three business days later, if the payment is not returned, PayPal submits a
payment to credit your bank account. For a credit, conversely, PayPal debits your bank
account, waits the period specified in your Payflow ACH Payment account agreement
(typically three business days), and then credits the customer’s bank account.
If a Debit/Sale is returned during the holding period, your bank account is not credited. If the
Debit/Sale is returned after the holding period, PayPal initially credits your bank account and
then debits it when the return is received. For returned credits, PayPal initially debits your
bank account and then credits your bank account when the return is received.
Payment Batch Settlement Time
Because the ACH network operates only on banking days (not on banking holidays), PayPal
settles at 7 p.m. the night before each banking day: Sunday, Monday, Tuesday, Wednesday,
and Thursday at 7 p.m.
Payments submitted Thursday after 7 p.m. are not sent for settlement until Sunday at 7 p.m.