Authorize net shows settledSuccessfully but Chargebee shows failed

When processing ACH or eCheck payments through Authorize Net, you may notice a mismatch in transaction status between Authorize Net and Chargebee. This article explains why that happens and how to interpret the correct transaction outcome.

How ACH transactions are handled in Authorize Net

ACH/eCheck payments in Authorize Net go through two distinct stages:

1. Settlement

• Authorize Net submits the debit request to the bank.
• If the bank accepts it without immediate rejection, the transaction is marked as settledSuccessfully in Authorize Net.

2. Return window (2 to 5 business days)

• The bank can later reject the debit with a return code (e.g., R03 - No account/unable to locate account).
• When this occurs, Authorize Net does not change the original transaction status.
• Instead, it appends the rejection under a returnedItems block in the transaction data.

Why the statuses differ

• Authorize Net continues to show the original status as settledSuccessfully, because the debit was technically submitted into the ACH network.
• Chargebee, however, reads the returnedItems data and updates the payment status as failed, since the funds were not actually collected.

How to resolve this

1. Treat the status shown in Chargebee as the accurate final status.
2. In Authorize Net, check the returnedItems section in the transaction record for return codes.
3. If the return code is something like R03, it means the bank rejected the transaction after initial settlement. Chargebee reflects this as a failed payment.