Instant funding credit card processing gives you access to your revenue stream without having to wait. Some high risk merchant accounts take time to process payments, and many of them set aside money into a reserve account. Instant funding allows you to immediately use and transfer the cash you make at your business.
Sign up for instant payment processing today!
How Instant Payment Processing Works
A customer taps their payment card on a card reader (or enters details in a shopping cart or mobile app).
The payment gateway forwards the credit card transactions to major payment networks like Mastercard and Visa, while the supporting payments platform routes data across the RTP network or ACH network.
Funds clear through the automated clearing house—or, for real‑time rails, via RTP operated by The Clearing House—and land in the merchant’s bank account or dedicated merchant account.
Because Zen Payments underwrites the risk management in advance, you receive fast funding without the typical processing fees or interchange fee delays associated with nightly batches.
This modern infrastructure greatly improves the customer experience by issuing an instant payment notification and PDF invoice plus receipt seconds after checkout.
Why Instant Funding Matters to Merchants
For many merchants, waiting two to five days for traditional batch processing can strangle cash flow and limit inventory purchases. Instant payments (sometimes called faster payments) put money from each credit card payment or debit card sale in your bank account or checking account almost immediately—often within minutes. That means same‑day access to working capital for payroll, emergency expense coverage, or even a last‑minute advertising push.
Same Day Funding Credit Card Processing
Another option for merchants looking to receive funds from credit card transactions quickly is by signing up for a same day funding merchant account. A same day funding merchant account deposits money at the end of each business day. As a result, you’ll have access the following day to the transactions that were approved the day prior. The timing of same day funding is largely dependent on your ecommerce merchant account and when you choose to batch your transactions or settle your funds.
You can batch your funds often or at the end of each day. Doing so usually incurs a small fee through your payment processor, but the benefit for many companies outweighs the cost. Some industries like restaurants batch all their transactions at night because they have to manually enter tips after customers pay their initial bill.
Instant Credit Card Processing
When a customer buys with credit, they are essentially making an agreement that the money they spend will be repaid. As a result, the bank takes on the debt and makes a payment on behalf of the customer. This is one of the reasons why receiving immediate funds for credit card processing is difficult.
Nonetheless, payment technology is getting faster each day. Solutions like cryptocurrency, Echeck, and ACH payments allow merchants to access their funds immediately without waiting on the security confirmations and waiting period credit cards demand.
ACH Payments and Funding
Another option for Merchants looking for fast payment processing is through ACH payments. Merchants no longer have to deal with payment disruptions or delays in accessing their funds with e-check merchant accounts. You can draw funds once the transaction is complete. In most cases, an ACH merchant account payment is nearly instant because of the secure nature of the bank-to-bank communication.
After a customer purchases a product or service on your site, their information is validated, tokenized then shared as secure payment data between bank channels. When this step is completed, the money you’ve earned is in your bank to use as you wish.
Zen Payments’ Technology & Integration for Same Day Credit Card Processing
Zen Payments uses an API that plugs into POS terminals, virtual terminals, mobile payment processing SDKs, and even JavaScript checkout widgets. Whether you deploy Clover, Square, or proprietary software, our sandbox lets developers test qr code payment, PayAnywhere, Zelle, or digital wallet flows in minutes—great for both brick and mortar and online retail operations.
Open banking rules—guided by the European Central Bank inside the Single Euro Payments Area (SEPA)—and ISO 20022 message formats help standardize cross‑border bank payments, making international bank account number (IBAN) mapping straightforward. For U.S. merchants, our ACH processing and bank payments pipelines comply with NACHA and The Clearing House protocols.
Risk, Fraud, & Reputation Management With Instant Payment Processing
Real‑time funding introduces unique risk factors: rapid chargeback velocity, potential fraud, and tighter treasury oversight. Zen Payments’ risk management engine leverages data analytics, black‑list scrubbing, and device fingerprinting to lower exposure. We enable configurable security features—multi‑factor authentication, tokenization, and AI‑driven fraud scoring—to safeguard merchant reputation and customer satisfaction.
High‑velocity sectors such as gig worker payouts, high‑risk merchant verticals, and instant merchant accounts receive specialized monitoring, ensuring high‑risk merchant account instant approval is tempered with stringent data security.
Implementation Checklist
- Review the Contract: lock in flat rate or variable transaction cost.
- Integrate the Zen Payments API with your payment terminal, card reader, or mobile app.
- Configure recurring payments, accounts payable, and remittance schedules.
- Stress‑test with sandbox customer support to simulate batch processing vs. real‑time flows.
Frequently Asked Questions
How Long Does It Take To Receive Funds?
Credit cards take an average of two to three days to deposit to your bank account. This is sometimes delayed with big purchases that seem out of the ordinary. For high ticket items, or products in industries that have higher fraud potential, a bank may investigate the transaction thereby delaying the transfer of funds.
What are the benefits or instant funding?
Instant funding offers a range of advantages over traditional credit card processing methods. In terms of speed, while traditional funding methods via ACH may take 2–5 business days to deposit funds, instant funding leverages the RTP network or open banking API to complete transfers in just minutes. When it comes to cost, traditional options often rely on tiered or flat rate models, whereas instant funding uses a competitive transaction fee with the option for a flat rate as well. This speed and efficiency dramatically improve access to capital; instead of dealing with slower cash flow, merchants can make same-day loan repayments and reduce overdraft risk. Security is also significantly enhanced—moving from standard PCI compliance to systems that incorporate advanced tokenization and robust data security protocols.
Expert tip: Pair instant funding with automated accounts receivable rules in your accounting software (e.g., QuickBooks, Xero) to reconcile each credit even faster.
Does instant funding work with both credit and debit card transactions?
Absolutely. Our rails support card payments from any major payment network—Mastercard, Visa, and payment processors such as Chase Payment Solutions—as well as ACH payments for direct debit.
What are the typical payment processing fees?
Most merchants pay a blended processing fee or flat rate plus a small markup for the real‑time funding feature. Exact cost depends on volume, risk, and chosen funding options.
Can I link multiple merchant accounts or payment gateways?
Yes. Zen Payments can enable dual routing so each pos terminal or virtual terminal directs funds to the right merchant accounts based on inventory, market demand, or channel.
What are No Reserve Fund Merchant Accounts?
A merchant account with no reserve funds means every dollar you make at your business goes into your bank account. Small businesses operate with small margins so every dollar counts. Moreover, company owners should be in control of the earnings they’ve generated.
In order to obtain a merchant account with no reserve funds you’ll need to have a long history of quality transactions. Conversely, if you have a high chargeback rate your reserve account may increase. If your business has a low chargeback rate you may qualify for the elimination of reserve fund requirements.
Why Do I Have A Reserve Account?
Reserve accounts are in place to help protect the customer and the bank. They are a safety net for both entities if a company were to incur multiple chargebacks or go out of business. In some cases, a bank may find that a business was operating fraudulently either by selling inferior goods, or not providing the services. They then use the reserve funds to reimburse customers.
sales@zenpayments.com
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