I was testing ACH rejections at Authorize.net under a live account; so I entered a real routing number, with an account number "123456789" and an account holder name "Test Test".

I was surprised when I saw the transaction was approved; but after 48 hours, I got shocked when I saw the transaction SETTLED:

Settlement Amount: USD 12.95 Settlement Date and Time: 29-Mar-2022 20:52:59 PDT Business Day: 29-Mar-2022

Authorization Amount: USD 12.95 Submit Date/Time: 28-Mar-2022 23:32:38 PDT Reference Transaction ID: Not Applicable Transaction Type: Authorization w/ Auto Capture Recurring Billing Transaction: N

Card Type: eCheck Account Number: XXXX5678 ABA Routing Number: XXXX1017 Name on Bank Account: Test Test eCheck Type: WEB Total Amount: USD 12.95

This was shocking for me because for ACH accounts, Im checking the settlement status in order to ship the clients' purchases. This is no longer an option for me.

I believe Authorize.Net is confirming the routing number is correct, and the "settled" status refers to the transaction going to the bank, but Authorize is never confirming if it was approved or not.

The questions are, is there something wrong with my approach of checking for a settlement status? Is this the way Authorize.NET works? Should I expect a "wrong account number" or similar status at their API in the upcoming days?

Thanks.