What happens to a pending transfer when a funding source is updated?

What happens to a pending transfer when a funding source is updated?

• Feb 9, 2023
• Knowledge

Information

Title
What happens to a pending transfer when a funding source is updated?

Summary
Funding source (bank account) details including accountNumber, routingNumber and bankAccountType are all optional fields that can be updated via the API when it has an unverified status. The Dwolla API grants applications the ability to update these fields both before and after a transaction is created.

If a funding source is updated after a transaction is created and prior to Dwolla sending the transaction through the ACH Network for processing, the transaction will be routed to the updated bank account.

This behavior may lead to unintended consequences such as the funds being routed to a different account than the one specified in the initial API transfer request.

Recommendations: Keeping this behavior in mind, you may consider removing edit functionality for funding sources within your application if the end user has any pending transactions.