ACH

Introduction to Automated Clearing House (ACH) transactions

Overview

An ACH payment method is an electronic funds transfer between banks in US that takes between 24-48 hours to complete. You can send and receive funds using ACH.

Method: POST

Endpoint: {{env}}/api/transaction

Example

Request Payload

{
  "ZumRailsType": "AccountsPayable",
  "TransactionMethod": "Ach",
  "Amount": 123.45,
  "Memo": "Memo",
  "Comment": "This transaction is just a test from a wallet to user",
  "UserId": "1d431e8b-...85452adb4eee",
  "WalletId": "8ebd932b-...b92633e14297",
  "PaymentInstrumentId": "92142401-...389ba0d87e75"
}

Request Parameters

Parameter	Type	Mandatory	Description
ZumRailsType	string	yes	Transaction type
TransactionMethod	string	yes	Transaction method.
Amount	decimal	yes	Transaction amount
Memo	string	yes	Memo description.
Comment	string	no	Internal comment you might want to add.
FundingSourceId	guid	no	Funding Source Id
WalletId	guid	no	Wallet Id
UserId	guid	no	User Id
PaymentInstrumentId	string	yes	Payment instrument id
User	User input	no	It's possible to create a transaction without adding a user first. Simply pass the user object (instead of the UserId) into the transaction body. For reference, check the payload example of the user object here and pass this when you create a transaction.
ScheduledStartDate	date	no	The date when the transaction will be sent to the financial institution, in the format YYYY-MM-DD. Must be greater than today.
ClientTransactionId	string	no	This field can be used to store the Transaction id created in your system when the Transaction is initiated

To learn more about ACH transactions, see API Reference.

Benefits of using ACH

• Low-Cost: ACH payments usually have lower fees than wire transfers or credit cards.

• Speed: ACH payments are processed quickly, often within 1-2 business days.

• Security: Highly secure with encryption and reduced risk of fraud compared to checks or cash.

• Convenience: Easy to set up for recurring payments like payroll, bills, and subscriptions.

• Wide Usage: Commonly accepted by businesses and financial institutions, both domestic and international.

How it works?

Collect Authorization

Independent of the method used to add payment profile, a user is always asked to agree and consent the information shared (PAD) when creating a payment profile. The message can be customized for your needs as well. Your specific settings will be available under your profile in Zūm Rails portal.

Transaction Types

• FundZumWallet

• WithdrawZumWallet

• AccountsPayable

• AccountsReceivable

Transaction Life-cycle

Accounts Receivable transaction with funds sent to Wallet from User

1. Transaction with type Accounts Receivable started from User to Zūm Wallet

2. Transaction sent to Financial Institution

3. Wallet was funded

4. Transaction completed

Accounts Payable transaction with funds sent to User from Wallet

1. Transaction with type Accounts Payable started, from Zūm Wallet to User

2. Transaction sent to Financial Institution

3. Wallet withdrawn

4. Response received from financial institution for credit transaction

5. Transaction processed by financial institution

6. Transaction completed

Processing Schedule

ACH - Processor A

• Transactions are sent when they are created;

• When we process the responses - everyday:

  • 11:45am;

ACH - Processor B

• Transactions are sent when they are created;

• Responses are processed when Orum sends us webhooks;

Source-Only

• ASAP before 4:30 pm EST: Same Day ACH Debit: T+2

• Same day before 4:30 pm ET: Same Day ACH Debit: T+2

• ASAP afrer 4:30 PM ET: STandard ACH Debit: T+3

• Same Day after 4:30 pm EST: Standard ACH Debit: T+3

• Standard: Standard ACH Debit: T+3

Destination Only

• ASADP and bank account is RTP or FedNow eligible: Instant

• Same Day before 4:30 pm ET: Same Day ACH Credit T+0

• Same Day after 4:30 pm ET: Standard ACH Credit: T+1

• Standard: Standard ACH Credit: T+1

Additional features

• Account Verification - Instant Account Verification allows connecting to an end user’s financial institution to retrieve account and routing numbers for. This data can be used for various purposes, including money movement and account opening.

• Balance Checks - Balance Checks allow retrieving the available balance for an end user’s financial accounts. This service provides balance details without retrieving transaction data.

• Owner identification - Owner Identification retrieves information about the owner of an account, such as their name, address, and contact information. This information is crucial for verifying the identity of an end user.

Transaction Limits

Transaction Limit	Minimum	Maximum
Amount limit per transaction	$0.00	Unlimited
Maximum volume per day	$0.00	Unlimited
Transaction per day	$0.00	$99,999,999
Maximum Volume Per Month	$0.00	Unlimited

Transaction Events

Zūm Rails also offers detailed transaction events that indicate every step the transaction lifecycle.

All

Event	Description
Started	When the transaction started
Succeeded	When the transaction succeeds, when it finishes without any error
WalletFunded	When the transaction funds a wallet
WalletWithdrawn	When the transaction withdrawn a wallet

Standard ACH

Event	Description
AchTransactionAccepted	When transaction is accepted
AchFailedTransactionExpired	When transaction has expired
AchFailedReturnedOrClosedAccount	When transaction is returned due to a closed account or any other return reason
AchFailedRejectedWithReason	When transaction is rejected for a reason
AchFailedGeneralError	When transaction has failed due to general error
AchFailedHighRiskOrPotentialFraud	When transaction is rejected as high-risk or potential fraud
AchFailedDueToMerchantSetup	When transaction failed because of invalid or inactive merchant id
AchFailedInvalidValueForField	When transaction failed due to invalid value for field
AchFailedAuthorizationRevoked	When transaction failed because authorization was revoked
AchFailedDuplicateTransaction	When transaction failed due to duplicated transaction
AchFailedDueToProcessorTimeout	When transaction is not successfully processed due to processor timeout
AchFailedTransactionNotAllowed	When transaction is not allowed by provider
AchBankAccountVerificationFailed	When transaction fails because the bank account verification failed
AchDebitResponseReceived	When response is received for a debit transaction
AchCreditResponseReceived	When response is received for a credit transaction
AchTransactionReturned	When transaction returned from bank
AchTransactionResubmitted	When transaction is resubmitted for processing again
AchCancellationFailed	When request to cancel transaction failed
AchCancellationFailedDueToMerchantSetup	When request to cancel transaction failed due to merchant setup
AchCancellationFailedRefundGreaterThanTransactionAmount	When request to cancel transaction failed as refund amount is bigger than transaction amount
AchCancellationFailedTransactionAlreadyCancelled	When request to cancel transaction failed because transaction is already cancelled
AchFailedDueToNegativeData	When transaction failed due to negative user data
AchFailedIneligibleBankAccount	When transaction failed because bank account is not on ACH network

Same-day ACH

Event	Description
SameDayAchFailedGeneralError	When transaction has failed due to general error
SameDayAchFailedHighRiskOrPotentialFraud	When transaction is rejected as high-risk or potential fraud
SameDayAchFailedDueToNegativeData	When transaction failed due to negative user data
SameDayAchFailedDueToMerchantSetup	When request to cancel transaction failed due to merchant setup
SameDayAchFailedDueToProcessorTimeout	When transaction is not successfully processed due to processor timeout
SameDayAchFailedTransactionExpired	When transaction has expired
SameDayAchFailedPaymentDeclinedByUser	When transaction is declined by user
SameDayAchFailedTransactionNotAllowed	When transaction is not allowed by provider
SameDayAchFailedInvalidValueForField	When transaction failed due to invalid value for field
SameDayAchFailedAuthorizationRevoked	When transaction failed because authorization was revoked
SameDayAchFailedDuplicateTransaction	When transaction failed due to duplicated transaction
SameDayAchBankAccountVerificationFailed	When transaction failed because the bank account verification failed
SameDayAchFailedRejectedWithReason	When transaction is rejected for a reason
SameDayAchFailedReturnedOrClosedAccount	When transaction is returned due to a closed account or any other return reaso

Testing

To simulate an ACH failure, include an event name from the list above in the COMMENT field when creating a transaction. If you don't mention an event in the COMMENT, the transaction will change its status to "Completed" in the sandbox environment.

Simulating Success

{
  "ZumRailsType": "AccountPayable",
  "TransactionMethod": "Ach",
  "Amount": 123.45,
  "Memo": "This transaction will succeed",
  "Comment": "This transaction will succeed because there's no keyword",
  "UserId": "1d431e8b-...85452adb4eee",
  "WalletId": "8ebd932b-...b92633e14297"
}

Simulating Failure

{
  "ZumRailsType": "AccountPayable",
  "TransactionMethod": "Ach",
  "Amount": 123.45,
  "Memo": "This transaction will fail with event AchFailedRejectedWithReason",
  "Comment": "AchFailedGeneralError",   // Include event name in comment
  "UserId": "1d431e8b-...85452adb4eee",
  "WalletId": "8ebd932b-...b92633e14297"
}

To simulate a late failure, mention any of the following events in the COMMENT field:

• AchFailedRejectedWithReason

• AchFailedReturnedOrClosedAccount

• SameDayAchFailedRejectedWithReason

• SameDayAchFailedReturnedOrClosedAccount