We partner with Dwolla to support ACH payments. That partnership requires:
The maximum amount for ACH direct deposits is $250,000.00
ACH currently supports U.S. Bank Accounts only
U.S. law and KYC/AML compliance requires verification of all users who are funding through electronic transactions - that includes you and your investors - which can take up to three business days
ACH transactions generally take 3-5 business days to complete
Should the payment fail for any reason, you will see the payment status returned as Failed. Clicking the down arrow next to the Error message gives more detail for the reason.
Investor Account Error
Most errors will occur because of an issue on the investor's end. Even if the initial status shows Paid, the transaction may still fail when Dwolla attempts to deliver the funds within the 3-5 day window.
In this example, the transaction failed because the account number format was invalid. You will also see a similar message if the account number is not associated with a valid account.
In these cases, Dwolla removes the funding information for the investor account. The payment method for the investor account needs to be changed or the payment instructions need to be updated. Because the transaction itself has failed, you cannot reset and restart this payment. See the Make Distribution Payments After ACH Failures section below for how to pay investors with this issue.
Sponsor Account Error
You may also see an error if there is a problem with the account associated with the investment entity that is making the payments. In this example, the balance could not accommodate the $800.00 payment.
In most cases, Dwolla retains the funding information for the sponsor account. If, however, there is a fundamental problem with the account - it is closed or the account number is invalid - the funding information will be removed. If this occurs, the bank account information for the investment entity must be updated. Because the transaction itself has failed, you cannot reset and restart this payment. See the section below for how to pay investors impacted by this issue.
Make Distribution Payments After ACH Failures
Once the bank account issue is resolved, you can select the failed or canceled payment and click on Make ACH payment to try again.
This will take the payment back through the ACH process.
You may also choose to change the method of payment to check or wire and process the payment outside of ACH.
Once the payment is changed to a manual payment method, you can mark it as paid when the check is issued.
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Support Information
If you have more questions or feedback, please use the live chat in-app (located in the bottom right corner) or contact support@groundbreaker.co.