In this article, you'll find a glossary of payments terminology for your team to better understand and speak to Pay by Bank processes when engaging with Dutchie support or with your consumers.
Glossary of Payments Terms
| Term | Pay by Bank Definition |
| ACH | Automated Clearing House Network |
| ACH Credit | Requests to “push” those funds (minus fees owed to Dutchie) to the dispensary. |
| ACH Debit | Requests for the ACH network to "pull" funds from the consumer's account for the purchase of the product |
| ACH Return | An ACH return is equivalent to a bounced check. An ACH return occurs when a PBB consumer (your dispensary customer) provides bank information to make a payment; however, the payment is returned by the bank for one of many reasons, the most common of which for PBB transactions is insufficient funds (R01 return code). Learn more here. |
| ACH Transfer | ACH transfer is the electronic movement of funds from one bank account to another. |
| Batch | A group of multiple Pay by Bank (ACH) transactions that are processed together. |
| Batch File | Pay by Bank "batches" multiple times a day from 12AM to 11:59PM local time to capture a full day's worth of transactions. All transactions within the batch timeframe are included in what is called a batch file, and a batch file may contain many batches. The file contains all the information necessary to post transactions. |
| Batch Effective Date | This is the date the batch file is sent for processing. |
| Business Day | Pay by Bank transactions process by "business day", which means Monday through Friday within standard business operating hours. |
| Consumer | When our teams refer to "consumers" we mean your customers that use Pay by Bank to make purchases. |
| Decline | A decline is a message that displays when a transaction attempt is rejected. Declines are an expected and normal aspect of payment processing in any industry or with any payment method. |
| Deposit | Pay by Bank settlements that have been processed and received by the dispensary's bank account. This is the actual amount your dispensary receives for Pay by Bank transactions. |
| Deposit Delay | Though it does not happen frequently, a batch file may encounter errors when being processed that could result in a deposit delay. If your store learns of a delay from our support team for a Pay by Bank deposit, this is a technical issue outside of Dutchie's control - but funds will be received. |
| Disbursement | This term is used in our Dutchie Pay (Pay by Bank) Settlement report, and is sometimes used interchangeably with the term "deposit". In payments, a disbursement is the act of payment for funds owed. For Pay by Bank, disbursement is when Dutchie sends settled funds to the dispensary. |
| Error | An error message displays when the user is not navigating the platform as expected or when processes do not align in the way they were designed. Errors are unexpected behavior either by the user navigating the system or by the system processes themselves. While declines are more about the payment process, errors relate to the software or hardware itself encountering issues. |
| Insufficient Funds | The Pay by Bank consumer did not have enough funds in their account at the time a balance check was completed or when settled funds attempted to withdraw (R01 ACH Return Code). |
| Refund | For Pay by Bank, this means offering cash to a customer when a refund is needed. Due to the nature of ACH, funds cannot be returned to the original payment method directly. |
| Retry | Retried payments are those that were returned due to insufficient or uncollected funds and have now entered the Pay by Bank retry queue for collection. Learn more about the retry process here. |
| Settlement | The transfer of funds between Dutchie and the Dispensary for transactions included in the settled batch file for specified locations. Your settlement data lives in the Dutchie Pay (now known as Pay by Bank) Settlement report in the POS backoffice under Reporting. |
| Settlement Timing | Settlements for Pay by Bank are next-day, which means a batch for Monday transactions will close at 11:59PM and will settle the very next business day (Tuesday, for example). Funds for Pay by Bank transactions do not "pull" from the consumer's account until the next business day. With this in mind, dispensaries can expect to see settlements deposited into their accounts in 1 to 2 business days after the transactions have been batched. |
| Uncollected funds | When a Pay by Bank consumer places an order and the balance check is completed, it will run against the available balance of their bank account. However, if funds needed to cover the order are in pending status (not yet in the consumer's "available" balance to spend and therefore not guaranteed by their bank), the payment attempt may produce "uncollected funds" as a return reason (R09 ACH Return code). |
| Velocity | Fraud prevention velocity checks are designed to detect potential fraudulent transactions based on the speed and frequency of transactions. |