Next-day funding can be an asset to a business that needs quick turnaround for its cash payment system. Improved cashflow through next-day funding can make payroll, inventory, or paying vendors easier to achieve and make a business run smoother. But next-day funding has certain requirements for merchants to acquire these benefits and all situations aren’t created equal.
Here are a few guidelines you need to know to see if next-day funding is right for your business:
1. Next-day funding cut-off times are not the same for everyone.
Depending on the type, location and time zone of your business, next-day funding may or may not work for you. You will need to close your batch early in the work day to have your credit card receivables hit your account the next morning. With that in consideration, you need to determine if your business can work within those parameters to make next-day funding the right fit for your company.
2. Next-day funding is still subject to risk review.
Batches are always reviewed for accuracy and to prevent fraudulent charges. Next-day funding is no different but ACH networks have less time to make these reviews happen. Although it is the exception and not the rule, when the network sees something to give them pause from a risk perspective, they might hold your funds for investigation and that means you won’t get your money as fast you thought.
3. Configuration of your network is key.
Acquirers can provide next-day funding but it depends on the configuration of the network rails your business is riding on. Acquirers can be restricted to certain networks and that might make it harder for your business to receive next-day funding. If you want next-day funding and your payment environment isn’t supported by a specific network, then you aren’t able to receive this benefit.
4. Only specific systems are capable of next-day funding.
There are many gateways, software systems and POS systems that have the capability to provide next-day funding but not all of them do. Your payment processing environment influences your ability to receive next-day funding so it something you need to look into to be eligible for next-day funding.
5. There may be extra fees associated with next-day funding.
Many processors will claim that they grant next-funding with no charge. While that may be the case for most, there are some businesses that do incur a fee for having this value-added service to help money flow faster. Your processor may also require a cash reserve to receive faster funding.
Find Out If Next-Day Funding Works for Your Business:
Contact us online or call 1-800-621-8931.