Custom ACH Holds Added

Release Date

Jan 13, 2025

Products Affected

ACH Payments

Impact

Custom ACH Debit Origination Holds Added

Audience

Customers using ACH Debit Origination

Action Required

None

Overview

Customers can now decide how long the funds from an ACH Debit Origination should be held at the transaction level.

Before, the number of days was determined as a program-wide setting.

Details

A new field has been added to the Create Payment API, ach_hold_period, where this value should be specified. This field has been added within the method_attributes object. It can be used in the following manner:

curl --request POST \
     --url https://sandbox.lithic.com/v1/payments \
     --header 'Authorization: 650f3056-4c1e-4302-b1a6-f89f1756c189' \
     --header 'accept: application/json' \
     --header 'content-type: application/json' \
     --data '
{
  "method": "ACH_NEXT_DAY",
  "method_attributes": {
    "sec_code": "CCD",
    "ach_hold_period": 1
  },
  "type": "COLLECTION",
  "amount": 25000,
  "external_bank_account_token": "372fef35-a1fc-49b6-a608-1006e25e37d9",
  "financial_account_token": "a66d1b75-95bf-5b67-874e-59ae9b00876f"
}
'

By using a value of 1 for ach_hold_period, the funds will be held for 1 day

An ACH_ORIGINATION_RELEASED event will be emitted 1 day after the payment settles
- The ACH_ORIGINATION_SETTLED event indicates the payment settling

The balance impacts of these events are as follows:

`event.type`	Pending Balance	Available Balance
`ACH_ORIGINATION_INITIATED`	None	None
`ACH_ORIGINATION_REVIEWED`	None	None
`ACH_ORIGINATION_PROCESSED`	None	None
`ACH_ORIGINATION_SETTLED`	Increased	None
`ACH_ORIGINATION_RELEASED`	Decreased	Increased

Please note that Lithic will configure both a Minimum Hold Time and a Default Hold Time for your program

Minimum Hold Time is the lower bound for how long a payment must be held. ach_hold_period cannot be set to a lower number than Minimum Hold Time, or Lithic will reject the payment.
Default Hold Time determines how long a payment will be held if ach_hold_period is not set.

Release Timeline

Available now: January 13, 2025

User Impact

No impact, this change is additive only. Learn more about our ACH Payment Lifecycle here.

If you have any questions or concerns, please contact us via the HELP link in your Lithic Dashboard.

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