Introduction to ACH in Sage Expense Management
Sage Expense Management allows organizations in the United States to pay reimbursements to their employees via the ACH network. Dwolla helps move funds from your organization’s bank account to your employees' bank accounts.
Sage Expense Management supports Standard ACH transfers. Payments take 3–5 business days to complete.
Administrators and owners in Sage Expense Management have the necessary role privileges to set up and manage ACH details.
About Dwolla
Dwolla operates a software platform that sends your payment instructions to their financial institution partner. Dwolla is committed to protecting the personal information it collects.
To know more, read Dwolla’s Privacy Policy and Terms and Conditions.
Setting up ACH on Sage Expense Management
The steps below outline how to configure your withdrawal account, verify your business, and complete your organization’s ACH setup.
Business Verification
Navigate to Admin Settings > Reimbursements and select Reimbursement via ACH.
Verify your business details before linking the withdrawal account. Verification is mandatory for compliance, and ACH cannot be configured without it.
Choose the type of ownership applicable to your organization or entity.
For Sole Proprietorships, basic details are sufficient for setup after verification.
For LLCs, Corporations, or other business types, additional details and authentication are required.
Enter the details of your organization’s Controller and, if applicable, a Beneficial Owner.
If your organization is exempt or has no individual with at least 25% ownership, you can proceed without Beneficial Owner information.
Refer to the table provided in the app for specific Beneficial Owner requirements.
After submitting the required information, your details will be verified. You can track the verification status on the ACH page.
If the status shows Documentation verification pending, upload the required documents.
Click Add to upload documents. Files should be color scanned in JPEG, JPG, or PNG format and under 10 MB.
If your business includes a Beneficial Owner, and the status is pending, upload their documents as well.
Adding your company's bank account
Once your business is verified:
Go to Admin Settings → Reimbursements to link your withdrawal account.
Click Link Bank Account to search for your bank and securely enter credentials. Sage Expense Management does not store bank credentials.
Once linked, you can view, remove, or update your company’s bank account directly from the UI.
You can also update the email address that receives ACH-related notifications from Dwolla.
Verification of bank account
After linking your bank account, Dwolla will send two micro-deposits (each less than $0.10). Once these appear in your bank statement (within 1–2 business days), enter them in Sage Expense Management to verify your account.
Capabilities of ACH module in Sage Expense Managment
Real-Time ACH Limit Visibility
Admins can see their available ACH balance and percentage of the limit used on the Approved and Processing tabs.
If you try to process reimbursements that exceed your limit, you’ll be stopped immediately and prompted to retry with a smaller amount.
Expected Reimbursement Timeline
Spenders see an expected reimbursement date on their report. If the payment doesn’t complete by that date, admins can reach out to support.
Tracking Employee Bank Accounts
Admins can:
Filter for employees who haven’t added their bank details
Send reminders directly from the reimbursement flow
If an employee doesn’t have an active bank account, their reports will be excluded from ACH reimbursements until one is added.
Report and Payment Visibility
Reports clearly show whether they were paid via ACH or manually closed.
Failed reimbursements are clearly highlighted in the UI, and admins receive email notifications for any payment failures.
ACH-related events (initiated, successful, failed, etc.) appear in the History tab of the report.
Each failure includes a reason (for example, insufficient funds, invalid account, or closed account).
The Retry button now appears only for failures that can actually be retried.
Definitions and Notes
Controller: A person with authority to control or manage a company (e.g., CEO, CFO).
Beneficial Owner: A person who directly or indirectly owns 25% or more of a company.
Account Admin: The administrator setting up ACH in Sage Expense Management.
ACH Availability: ACH is available only within the United States.
Frequently Asked Questions (FAQs)
Why does Sage Expense Management need my business information and why verify it?
Federal law (USA PATRIOT Act of 2001) requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
When you open an account, we’ll ask for your name, address, date of birth, and other identifying information. We may also ask for photo ID or other documentation.
Why is Sage Expense Management asking for personal details during business verification?
ACH support is offered through a US-based financial institution subject to federal laws. The USA PATRIOT Act requires institutions to verify business owners’ and controllers’ information.
Verification takes a few days, and the data is not stored by Sage Expense Management after submission.
What personal data is needed?
You may need to provide your full name, date of birth, Social Security Number, and in some cases a form of photo identification. This applies to all Beneficial Owners and at least one Controller.
What does my personal information get used for?
Your information is shared securely with our financial partner for verification and is used only for compliance. It may be shared further only as required by law.
Does my personal information get sold?
No. Neither Sage Expense Management nor our partner financial institution sells personal information.
How long does the business verification process take?
Dwolla’s business verification usually takes 4–5 business days, provided all required details are correct.
How long will ACH payments take?
Standard ACH payments are completed within 3–5 business days. Next-Day ACH, if enabled, completes within 1 business day.
How are multiple payments handled?
If several reimbursements are processed at once, they will appear as one transaction in your company’s bank account, totaling all employee reimbursements.
Can ACH payments fail?
Yes. Payments can fail due to insufficient funds, invalid account details, or a closed employee bank account.
What bank accounts are supported?
Sage Expense Management supports Savings and Checking accounts across major US banks.
How can I send funds through ACH?
Once your business details are verified and a withdrawal account is linked, you can reimburse employees directly via ACH after they add their valid bank details.
Where can I find transfer details?
Each ACH transfer generates two bank reference values:
Bank Reference: Appears on your company’s bank statement for outgoing transfers.
Employee Bank Reference: Appears on the employee’s bank statement for incoming transfers and is visible on their dashboard.
Why can’t I add a bank account on my profile?
If your organization’s business verification is not complete, you won’t see the option to add a bank account yet.
Can I cancel an ACH payment?
No. Once an ACH payment is initiated, it cannot be canceled. You can take action only after it is successful or failed.
What happens when an ACH payment fails?
You can see payment status under the Status column. If a payment fails, you’ll see an error message with the reason and possible resolution.
Common examples:
Insufficient funds: Add funds to your company’s account and retry.
Employee account closed: Ask the employee to add an active bank account and retry.
Invalid bank details: Ask the employee to correct their account details and retry.
If the reason is unclear, contact [email protected] for assistance.
Why does my report history show both “ACH payment successful” and “ACH payment failed”?
In rare cases, you may see events appearing out of order, such as an “ACH payment successful” event followed by an “ACH payment failed” event.
This happens when our provider (Dwolla) sends delayed failure notifications after initial success updates. This delay can be up to one business day.
No payments actually go through in these cases. The report will return to Processing and show the final failed status.
If you’re unsure, contact [email protected] for clarification.