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Next Day Deposit Credit Card Processor

Next Day Funding For your Small Business. Businesses need a continuous and stable flow of funds to operate. There are salaries to be paid and overhead expenses to be covered. This includes cash for rental payments, production, distribution and advertising. Small businesses feel the pinch because they work with a limited amount of capital and in their start-up days, the profits are not substantial enough. To add, with the lack of timely payments from customers, they are forced to gather money from whatever sources they can to pay for utilities. High risk businesses have it more difficult because they deal in high ticket items, future deliverables, online fraud, poor credit ratings and chargebacks. Not having funds can stall the growth of a business. Merchant account providers offer options such as same day and next day funding to work around this problem. Learn more about the importance of next-day funding for your small business.

About Next Day Funding

What does it feel like to have earned money, but have no access to it? Nowadays, people pay for most goods and services using plastic money. In order to be able to accept card payments, merchants need to work with a payment processor that processes payments made using Visa, MasterCard, American Express and Discover cards. Funds transferred via card payments cannot be used immediately on transfer. Merchants are required to wait for a few days or weeks before they can access their funds. The waiting period depends on the credit card processing company the merchant has hired. It could be anywhere between 1 to 3 days. This applies for card and automated clearing house (ACH) payments. This practise of holding payments for a few days can cause a lot of inconvenience to a business, especially those with less capital.

Next day funding is a facility that transfers payments in the merchant’s account within the next business day. For some next day funding includes transferring funds within 24 hours of a batch time. Next day funding can be completed only on business days, not holidays. However, a few transfer funds on weekends too.

There are several benefits of next day funding for your small products or services business:

  • Faster access to your cash that can be used for payroll, inventory and other utilities.
  • Faster settlement of payments which enables better management of accounts.
  • The ability to spot potential cases of fraud and chargebacks.
  • With a steady cash flow, you can be in complete control of bill payments and even put it on automation. Next day funding is a free feature with a credit card processing company. This cost is included with the regular processing fee.

How does Next-Day funding work?

Every payment processor has a cut-off time. The cut off time is the time limit deciding which of the day’s payments qualify for next day funding. For instance, if the cut off time set by a payment processor is 6pm, only those payments made before 6pm become eligible for next day funding. All card payments made after this time move into the next batch for clearing. Processing of transaction batches can be done manually or can be automated. There are a few payment processors willing to stretch the cut off time for clients or offer multiple cut offs at no extra cost. Multiple batch times enable payment processors to process as many transactions as they can.

Crescent Processors offers Next Day Funding

It is important to know what you are getting into when considering next day funding. The credit card processor should be upfront about what next day funding includes if you choose to work with them. They shouldn’t sell a service to you only because they must. First, consult a credit card processor to check if your business really needs next day funding. Ask about the cut off time. Payment processors might also offer other payment solutions such as instant payment and same day payment in addition to next day funding. One also needs to check if your payment processor imposes a limit on the batch size. There is another condition for next day funding; merchants must qualify for next day funding.

Possible Delays

Next day funding is what it says. The funds are made available for use on the very next day of the transaction. It shouldn’t be that it only reflects in the shadow balance in your account. There are possibilities of delay (should happen only occasionally) even with next day funding. It usually happens if a bank suspects fraudulent activity on a payment. Banks verify every payment before they transfer funds. Thus, suspicious activity could delay the approval time. So, ensure your business does not miss out on a bill payment or accrue late fees due to shortage of funds. Keep your business up and running by hiring a credit card processing company that offers next day funding.