Hi @andrew-willow!
It appears that this is a transfer to a Verified Customer type. In that case, this is expected behavior – the second leg of the transaction fails due to an R03 return from the bank, however, the funds were still successfully transferred to the recipient’s Dwolla Balance funding-source, which is why it is processed. If you retrieve the funded-transfer link from the links in the resource, it will take you to the final leg of the transfer which is failed.
You can check out this gist to find out all possible scenarios that a transfer may encounter and the webhooks triggered in each scenario - Outlines the sequence of events that are triggered for a subset of Dwolla payment flows that are bank-to-bank via ACH · GitHub