Merchant Processing Settlement Delays

Every now and then, business owners find themselves wondering why funds from a processing settlement that they’ve processed the day before are not in their bank account. This may be an overwhelming concern especially to those owners who depend on those funds for daily business expenses. But why does this happen and how can you prevent this from happening to you, you may ask?

Well, there are many factors that can result in funds not being deposited within the allotted time-frame that was implemented onto a merchant account. Funding does not occur on weekends and on certain holidays, particularly federal banking holidays however more common occurrences include but are not limited to:

• Loss of communication preventing the device from sending the settlement batch
• A processing settlement that occurred after the processors settlement cut-off time
• Consolidated weekend sales
• Failure to manually batch if there isn’t an auto-close time set.

More serious reasons for settlement delays involves funding delays that are implemented by the processor because of unusual transactions that are ran within the settlement. When a merchant account is setup, a unique profile is created based off the details provided for the average transaction size and processing volumes. If any abnormal activity is found outside of these parameters funds that have been settled within a batch will be delayed. Examples of abnormal activity include;

• A transaction which exceeds the normal high-ticket amount. These transactions may be retained by the Loss Prevention department until the sale is verified.
• Merchants with required reserves will have a portion of funds withheld.
• Any initiated chargebacks or associated fees may reduce an expected deposit.

The examples provided do not cover every possible scenario. However, be rest assured that AMP Payment Systems is here to assist with all funding scenarios! If you’re ever in question of an aspect of your processing and funding, please don’t hesitate to reach out to our dedicated support team.