2009

Table Of Contents
Payflow ACH Payment Service Guide 27
How Payflow ACH Payment Works
Timetable for a Typical ACH Payment
4
Day 2
The ODFI submits the payment to the ACH Network operator (Federal Reserve). The
customer bank account is debited. This is the first day of the three posting days.
Day 3
PayPal receives a return for the customer debit from ODFI. Returns occur for a number of
reasons. See “NACHA Return Status Codes” on page 50. Assume that this return is not retried.
The payment status shows the return code indicating the failure. Since the merchant side of the
payment is not settled, the payment is voided and is not settled.
Example of a Business-to-Consumer Sale/Debit Payment With a Customer
Return After Three Posting Days
This timetable describes a Business-to-Business Sale/debit payment, in which a customer pays
a company with an ACH payment and the Payflow ACH Payment account is configured for
three posting days. The ODFI generates a consumer-side return (payment is reversed) after 7
days.
Day 1
The customer initiates payment and you submit a payment to PayPal. PayPal validates the
payment format initiates the customer side of the payment. Payments are batched at the end of
each day prior to a banking day and at 7 PM (normally Sunday through Thursday). See
“Payment Batch Settlement Time” on page 25.
Day 2
The ODFI submits the payment to the ACH Network operator (Federal Reserve). The
customer bank account is debited. This is the first day of the three posting days.
Day 3
This is a wait day.
Day 4
This is the third day of the three posting days. PayPal initiates the merchant side of the
payment. The payment is batched at the end of each banking day at 7 p.m. See “Payment
Batch Settlement Time” on page 25.
Day 5
The ODFI submits the payment to the ACH Network operator (Federal Reserve). your bank
account is credited.
Day 6 (this could be within 60 days from Day 1)
PayPal receives a return for the customer debit from ODFI. Returns occur for a number of
reasons. See “NACHA Return Status Codes” on page 50. Assume that this return is not retried.
The payment status shows the return code indicating the failure. Since the merchant side of the
payment has settled, PayPal initiates an offset payment to debit your bank account to reverse
the payment.