Funding: Digital Account Opening (DAO) FAQs

This FAQ outlines how Clutch handles funding operations, including card holds, ACH, refunds, cancellations, and integration errors.

What happens when a funding method is entered?

• Card: A temporary hold is placed on the card.

• ACH: Funds are verified at time of submission and again at time of approval. No hold is placed.

If the application is not approved, no payment is captured. Card holds expire automatically after 7 days. Credit unions can release holds earlier via Stripe.

What happens after Alloy approval?

Once Clutch receives approval from Alloy, this sequence is followed:

Alloy Approval → Capture Funds → Book Membership → Book Shares

• If any step fails, the process is stopped.

• Funds are only captured after Alloy approval.

• If funds are captured but the booking fails, please get in touch with Clutch Support.

• Alternatively, utilize the "Cancel" button in the Clutch Staff Portal, but note the refund caveats below.

What does the Cancel button do in the Staff Portal?

• Changes the application status and prevents future processing.

• Attempts to:

  • Release the card hold (if no funds were captured yet).

  • Initiate a refund (if funds were captured).

Important:

• Refunds are not guaranteed. Stripe and Plaid are the source of truth.

• Refund success depends on:

  • Payment type (card/ACH)

  • Time elapsed since capture

  • Vendor response (Stripe/Plaid)

 When are refunds attempted?

• Refunds are only initiated when the user clicks "Cancel" in the Staff Portal.

• If the application was not approved, no funds were captured—only a hold was placed on the credit/debit card.

• If the application was approved, Clutch attempts to refund via API.

• Always check Stripe dashboards or reconciliation reports for actual payment status.

Common Questions

What if an older application still shows a credit, but the accounts were not created?

If the app was approved in Alloy, Clutch captured funds before the account creation failed. These need manual review and potential reprocessing or refund.

Please contact Clutch Support to investigate the status of the refund.

What an application needs to be canceled but the funds retained?

• Avoid using the Cancel button in the Staff Portal.

• Instead, reprocess the app or transfer funds manually once membership is created.

• Cancel only if you're sure you want to return or release funds.

Do declined applications trigger refunds?

• No. Clutch does not capture funds for declined applications.

• Only card holds may exist, which expire after 7 business days.

Are refunds automatic for pending applications?

• No. Pending apps haven’t been approved, so no funds were captured.

• Canceling only releases the card hold (if applicable).

How can I verify refund or payment status?

• Use your Stripe dashboard.

• Clutch's Funding Reconciliation Report also provides visibility.

Summary

• Funds are only captured after Alloy approval.

• The Cancel button triggers an attempt to refund or release, but is not guaranteed.

• Use Stripe or reconciliation reports definitive status.

• Contact Clutch Support for core booking issues or failed applications.

If you have any questions, please reach out to Clutch Support.