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.

Benefits of Instant Funding Processing

There are many important ways a merchant benefits from instant funding, these include:

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.

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 the ecommerce merchant account and when they choose to batch their transactions or settle their 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 transaction at night because they have to manually enter tips after customer’s pay their initial bill.

ACH Payments and Funding

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.

How Long Does It Take To Receive Funds?

Credit cards take an average of two to three days to deposit on 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 are conducive to fraud, a bank may investigate the transaction thereby delaying the transfer of funds.

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. Find a payment processor who can work with their underwriting team to review your past processing and reduce or eliminate 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.