The world runs on cash. Every business needs steady cash flow to function properly. Business owners need cash to pay staff, bills and be ready for any unexpected expenses that might pop up. While some businesses can wait a few days to receive cash in their bank accounts, others rely on fast funding to function properly.
Fast funding can be anything from same day to next day funding. This type of instant funding is essential for businesses that need cash to run their operations smoothly.
In today’s fast-paced business world, cash flow is a critical factor that can make or break a company’s success. Does your business need fast funding? Read on to find out.
How long does it take for merchants to receive funds?
One of the most common questions businesses have when considering fast funding options is, “How long does it take for merchants to get their funding?” The answer is: It depends! Different payment processors will have different funding windows that depend entirely on their process and the funding option you’ve selected. The faster the payment processor can authorize, batch, clear, and settle transactions, the quicker merchants can access their funds.
Traditional payment processing methods can be slow, often taking several business days to complete. It’s not uncommon for merchants to wait three to five business days to receive their funds after a transaction. This could even take longer if there are holidays or weekends in between. This delay can hinder a business’s ability to manage its cash flow effectively and seize immediate opportunities. While some businesses can make do with traditional payment processing times, growing businesses or businesses with an urgent cash flow, like convenience stores for example, will require quicker funding options.
How does instant funding work?
Instant funding is a financial service offered by payment processors that allows businesses to access their payment funds within a day or even the same day. This service is particularly beneficial for businesses that rely on credit card payments, as it accelerates the clearing and settlement process, providing them with quicker access to their revenue.
When a customer makes a credit card payment, several steps are involved in the processing of that transaction, including authorization, batching, clearing, and settlement. The speed of these processes directly impacts when the funds become available to the business.
Next day funding
Next day payment funds refer to the ability for businesses to access the funds from credit card transactions on the following business day. This rapid turnaround ensures that businesses can maintain their cash flow and cover expenses promptly. The timing and cut-off times for next day payment can vary depending on the merchant service provider.
Same day funding
Same day payment funds take instant funding a step further, allowing businesses to access the funds from credit card transactions on the same day they are processed. This level of speed is invaluable for businesses that require immediate access to their revenue.
Cut off times for funding
Payment processors use specific cut-off times that will determine the funds you will be able to receive for next day and same day funding. Some examples of cut-off times include:
- Next day funding: Transactions batched by 10 p.m. the night before
- Same day funding: Transactions batched by 10 a.m. the same day
4 steps of credit card processing
But why does credit card processing take any time at all? Why aren’t all transactions instant? To fully understand how same day and next day funding work, it’s essential to know the four critical steps involved in credit card processing.
- Authorization and authentication: When a customer makes a credit card payment, the merchant requests authorization from the customer’s bank to confirm the availability of funds and ensure the transaction is valid.
- Batching: At the end of each business day, the merchant collects all the authorized transactions and creates a batch to be submitted to the payment processor for settlement.
- Clearing: The payment processor sends the batched transactions to the card networks, which then forward the transactions to the cardholder’s bank for approval.
- Settlement and funding: Once the transactions are approved, the funds are transferred to the merchant’s account.
Get fast funding with Sekure
Approximately “93% of U.S. consumers” have a debit or credit card. With cash on the decline, it’s more important than ever for businesses to get access to faster funding from their credit card transactions.
Sekure Payment Experts offers a range of benefits for businesses looking to expedite their payment processing and access same day or next day payment funds. One of the key advantages of choosing Sekure is the access to lightning-fast processing speeds.
With Sekure’s payment processing partners, you won’t have to wait long for your payments to be processed and your funds to be available. This is especially important for businesses that need to move quickly to take advantage of new opportunities or manage cash flow efficiently.
Through Sekure’s partnerships you can get access to next day or same day funding. Transactions from Monday through Friday processed and closed before 10 p.m. ET will be deposited into your bank account the next business day. For same day funding, transactions that are closed and processed before 10:30 a.m. ET will be deposited into your account that same day.
Our commitment to providing fast funding ensures that you can access your revenue when you need it most. By understanding the credit card processing steps and leveraging Sekure’s expertise, you can ensure that your business remains financially agile and ready to tackle whatever comes its way.
Choose Sekure for fast funding solutions that make a difference in your business’s financial health. Talk to one of our Payment Experts to get access to fast funding today.