Merchant Industry offers true Next Day Funding program.
Traditionally card processors take settled batches, hold them for a day, and then issue an electronic transfer called an ACH through the Federal Reserve. The merchant’s bank receives the ACH in the evening after the bank cutoff time which enable them to deposit the fund only on the following day. Further most processors program the POS device to settle automatically during periods of low transaction activity hence often miss the early cutoff time for settlement. And for the merchants, transactions processed on Monday do not post to their bank account until Wednesday or Thursday, creating a 48-72 hour delay in posting the deposit to their bank account. Merchant Industry Next day funding program is programmed to post batches received at 7PM the very next morning. The settled batches are expedited through the federal reserve system and funds are electronically transmitted via an ACH. The client’s bank receives the ACH and posts the deposits on the same day following the settlement. As an example, transactions processed on Monday and settled before the cutoff time post to their bank account on Tuesday morning. This process enables clients to improve cash flow and operate their business more efficiently by not having to wait for 3-4 business days to receive their funds. Please refer to the Next Day Funding Chart for deposit clearing times.