diff --git a/src/alpine_bits_python/api.py b/src/alpine_bits_python/api.py
index ec31cff..702b832 100644
--- a/src/alpine_bits_python/api.py
+++ b/src/alpine_bits_python/api.py
@@ -1410,14 +1410,32 @@ async def handle_xml_upload(
             filename,
         )
 
-        # Process the conversion XML and save to database
-        # Use SessionMaker for concurrent processing of large XML files
-        # This allows multiple reservations to be processed in parallel with independent sessions
-        conversion_service = ConversionService(session_maker)
-        processing_stats = await conversion_service.process_conversion_xml(xml_content)
+        # Process the conversion XML in the background
+        async def process_in_background():
+            """Process conversion XML asynchronously in the background."""
+            try:
+                # Use SessionMaker for concurrent processing of large XML files
+                # This allows multiple reservations to be processed
+                # in parallel with independent sessions
+                conversion_service = ConversionService(session_maker)
+                processing_stats = await conversion_service.process_conversion_xml(
+                    xml_content
+                )
 
-        _LOGGER.info(
-            "Conversion processing complete for %s: %s", filename, processing_stats
+                _LOGGER.info(
+                    "Conversion processing complete for %s: %s",
+                    filename,
+                    processing_stats,
+                )
+            except Exception:
+                _LOGGER.exception(
+                    "Error processing conversion XML in background for %s", filename
+                )
+
+        # Create background task and add done callback for error logging
+        task = asyncio.create_task(process_in_background())
+        task.add_done_callback(
+            lambda t: t.exception() if not t.cancelled() else None
         )
 
         response_headers = {
@@ -1425,25 +1443,17 @@ async def handle_xml_upload(
             "X-AlpineBits-Server-Accept-Encoding": "gzip",
         }
 
-        # Return processing stats in response
+        # Return immediate acknowledgment
         response_content = f"""<?xml version="1.0" encoding="UTF-8"?>
 <response>
-    <status>success</status>
-    <message>Conversion data processed successfully</message>
-    <stats>
-        <totalReservations>{processing_stats["total_reservations"]}</totalReservations>
-        <deletedReservations>{processing_stats["deleted_reservations"]}</deletedReservations>
-        <totalDailySales>{processing_stats["total_daily_sales"]}</totalDailySales>
-        <matchedToReservation>{processing_stats["matched_to_reservation"]}</matchedToReservation>
-        <matchedToCustomer>{processing_stats["matched_to_customer"]}</matchedToCustomer>
-        <matchedToHashedCustomer>{processing_stats["matched_to_hashed_customer"]}</matchedToHashedCustomer>
-        <unmatched>{processing_stats["unmatched"]}</unmatched>
-        <errors>{processing_stats["errors"]}</errors>
-    </stats>
+    <status>accepted</status>
+    <message>XML file received and queued for processing</message>
+    <filename>{filename}</filename>
+    <timestamp>{datetime.now().isoformat()}</timestamp>
 </response>"""
 
         return Response(
-            content=response_content, headers=response_headers, status_code=200
+            content=response_content, headers=response_headers, status_code=202
         )
 
     except HTTPException: