Ach processing behaviour

API Support Funding Sources
1

I am creating transfer between two funding sources of type bank under master account.
When I am simulating using “Process Bank Transfer” button. Its showing transaction status Processed but it’s creating new transfer from balance to my destination bank. Can you explain me why this new transfer is generated automatically and how can we stop this?

2

@vaibhav_1 , The behavior you’re observing is part of Dwolla’s me-to-me funds flow. When you initiate a transfer between two bank funding sources under the same master account, the transfer actually happens in two parts:

  1. The first part of the transfer is initiated from the source bank funding source to the Dwolla Balance funding source. This is denoted by the customer_bank_transfer_created webhook you receive immediately after the transfer resource has been created.

  2. The second part of the transfer is then automatically initiated from the Balance funding source to the destination bank funding source. This triggers another customer_bank_transfer_created webhook.

This two-step process is designed to ensure that the funds are available and have cleared before they are transferred to the destination account. Once the transfer has cleared into the final destination bank funding source, you will receive another customer_bank_transfer_completed webhook denoting that the transfer is now complete.

Unfortunately, there is no way to stop the automatic creation of the second transfer from the Balance to the destination bank. This is a fundamental part of how Dwolla’s me-to-me funds flow works.

For more information, you can refer to the Dwolla documentation on initiating a transfer.