Pay-by-bank transactions are processed through the ACH network, so their payment lifecycle differs from credit and debit card transactions.
ACH payments typically take 2–4 business days to settle. During this time, the payment may appear as Settlement Pending.
ACH Payment Statuses
Settlement Pending
Settlement Pending (ACH · 2–4 days) means the payment has been submitted to the ACH network but has not yet cleared the patient's bank. No action is required while the payment is processing.
Paid
Paid means the patient's bank has successfully settled the ACH payment.
Funds are deposited into your practice account according to the ACH deposit timeline: 5 business days after the payment is received.
Returned
Returned means the patient's bank rejected or returned the payment after submission. No funds were collected. The payment details will include the reason for the return so your practice can determine the appropriate next step.
Refunded
Refunded means we processed a refund for a settled ACH payment.
ACH refunds typically take 7–10 business days to appear in the patient's bank account.
Returned · Refund Canceled
In some cases, a bank may return an ACH payment after you've already initiated a refund. When this happens, the refund is canceled because the original payment was not successfully collected.
The patient will need to provide another payment method if the balance is still due.
Why Was an ACH Payment Returned?
The payment details display a reason when an ACH payment is returned.
Return Reason | What It Means | Can It Be Retried? |
Insufficient funds | The account did not have enough available funds | Yes |
Uncollected funds | Funds were present but were not yet available | Yes |
Account closed | The bank account has been closed | No |
Account not found | The bank could not locate the account | No |
Invalid account number | The account information was invalid | No |
Account frozen | The bank account has been frozen | No |
Payment returned by bank | The bank returned the payment for another reason | No |
You can retry payments returned for insufficient funds or uncollected funds up to two times within 30 days.
For non-retryable returns, collect a different payment method from the patient.
Refunding an ACH Payment
You can refund ACH payments only after the payment has settled.
If the payment still shows Settlement Pending, the refund option will not be available.
Once the payment shows Paid, you can process a refund.
Frequently Asked Questions
How Long Do ACH Refunds Take?
ACH refunds typically take 7–10 business days to appear in the patient's bank account. The patient will receive a confirmation email after we process the refund.
Can I Issue a Partial Refund?
Yes. Partial refunds are supported for ACH payments.
Can I Refund a Returned ACH Payment?
No. A returned payment was not successfully collected, so no funds are available to refund.
What If a Return Happens After I Submit a Refund?
Occasionally, a bank can return an ACH payment after your practice has already initiated a refund. When this occurs, the payment will display: Returned · Refund Canceled
The refund is canceled because the original funds were never successfully collected. No additional refund action is needed. If the patient still owes the balance, contact them to arrange another payment method.
ACH Processing Timelines at a Glance
ACH settlement: 2–4 business days
Deposit to your practice: 5 business days after payment is received
ACH refunds: 7–10 business days
Eligible returned-payment retries: Up to 2 retries within 30 days
Because ACH transactions take longer to process than card payments, make sure your team accounts for the settlement period before considering an ACH payment fully collected.