Credit card processing is an essential part of modern business operations. As more customers choose to pay with credit cards, merchants need to understand how credit card processing works and how long it takes to receive funds from credit card transactions.
The time it takes to receive funds from credit card processing can vary depending on several factors, including the merchant’s processing agreement, the type of transaction, and the type of payment processing company used.
The steps of a credit card transaction
It might be helpful to understand that there are several players that work together to make a credit card transaction work and fund your account. A transaction starts with the consumer who holds the credit card that conducts a purchase from a merchant. The merchant’s payment gateway or credit card machine sends the transaction to the acquirer, then to the credit card network (i.e. Visa) and finally the issuing bank. All of this occurs in seconds and results in an approved or declined message for the consumer. In the end, an approved transaction funds the merchant’s bank account. There is a full article on how a credit card transaction works.
How long it takes for a merchant to get their funds after a credit card transaction
In general, credit card processing companies will deposit the funds from transactions into the merchant’s bank account within a few business days. The exact timeline for receiving funds can vary, but it is usually between 1 and 3 business days after the transaction has been processed with a merchant account provider. If you have an aggregator account, it can easily take 3 to 7 days. Sometimes even longer. Check out the differences between and aggregator and a merchant account.
TCM aims to be the fastest while making all attempts to fund within a day. Some other payment processing companies may also offer same-day or next-day deposits for an additional fee. These options may be beneficial for merchants who need quick access to their funds for cash flow reasons.
It’s important to note that the time it takes for funds to be deposited into the merchant’s account can also be impacted by factors such as weekends, holidays, and processing times for the merchant’s bank. Merchants should check with their processing company to understand their specific timeline for receiving funds and any fees associated with faster deposit options.
Why some funding times take longer in payments
There are several factors that can impact the time it takes for merchants to receive funds from credit card processing, including the following:
Processing Agreement: The merchant’s processing agreement with your credit card processing company can impact how long it takes to receive funds. Some agreements may have longer hold times for funds, while others may offer faster deposit times for an additional fee. Higher risk merchants may have delayed funding times within their agreement.
Type of Transaction: The type of transaction can impact how long it takes to receive funds. For example, transactions that are manually entered or require additional verification may take longer to process than transactions that are swiped or tapped.
Abnormal Transactions: If you have a transaction that is not typical, such as a very large transaction or a very high amount of transactions at once, there might be a delay on those transactions while they are verified by the risk department.
Processing Company Type: The processing company used by the merchant can impact how long it takes to receive funds. Some processing companies may have longer processing times or offer slower deposit options, while others may offer faster deposit times like TCM. Aggregator payment processors like Square, Stripe, and PayPal generally take longer to fund your account.
Bank Processing Times: The processing times of the merchant’s bank can impact how long it takes to receive funds. Weekends, holidays, and bank processing times can all impact the time it takes for funds to be deposited into the merchant’s account.
Merchants should keep these factors in mind when choosing a credit card processing company and setting their expectations for when they will receive funds from credit card transactions. By understanding the factors that impact the timeline for receiving funds, merchants can make informed decisions about their payment processing needs and ensure that they have access to the funds they need to operate their businesses.
How long TCM funding takes
In general, a credit card transaction through TCM is funded in less than a day. For transactions that occur in the morning, you are likely to get your funds by the same evening. This means same day funding which is a big differentiation for TCM. For transactions that occur later in the day, you generally get your funds the next morning. There are times that transactions take longer for the reasons described above.
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