Transaction Funding

Transaction Funding refers to the process of settling captured Merchant transaction funds from card and eCheck payments to be deposited in your Payrix Available Balance (FBO account) and made available for withdrawal to your bank account on file. This reference guide outlines funding flows for Card and eCheck payment transactions and the general timing of each.

Before you begin, review the following funding terminology:

  • Funding - This is settling captured transaction funds to be sent to the Merchant’s FBO account.

  • Payout - This is a scheduled event specifying when funds will be credited/debited and can be set to run daily, weekly, monthly, annually, or single for a one-off payment. Payouts can be set up by scheduling a Withdrawal in the Portal.

  • Disbursement - This is the record of funds being credited or debited to/from the merchant bank account based on the payout schedule.

  • FBO Account - This is an entity’s Payrix-hosted “For Benefit Of” account displayed on the Portal as the “Available Balance”. This is the first account where processed and settled funds are deposited, a process called “Funding”.

  • Bank Account - This is the external bank account provided by the Merchant during signup and used in payout configuration (Scheduled Withdrawal) as the destination account for FBO Account funds to be disbursed. This is sometimes called a “disbursement account” or “operating account”.

In the Portal, Payouts are shown under Withdrawal Schedules, and completed Disbursement events are represented underneath Withdrawal History.


Transaction Funds Settlement

Payrix submits transaction settlement batches daily to the processor for both credit cards and ACH transactions at 9:30 PM EST. Each batch is composed of all sale and refund activity that has been captured for processor settlement within the daily period.

  • Transactions processed after 9:30 PM EST will be captured in the next day's batch.

  • Card payment transactions are settled, then the Merchant’s FBO account is funded the next business day.

  • eCheck payment transactions are settled, then the Merchant’s FBO account is funded within 3-5 business days.

When the Merchant’s FBO account is funded from settled transaction amounts, the funds will immediately be made available for withdrawal manually or automatically using the recommended 100% Daily Withdrawal Schedule.

Warning: Specific bank account deposit timing may vary if the Merchant’s bank experiences delays in releasing funds.

Note: Transactions can be flagged as “high-risk” by the processor, resulting in a several-day hold that will delay the transaction from being funded and available for withdrawal. For questions regarding a transaction on hold or what constitutes a high-risk transaction, you can contact our Risk & Boarding teams.

Fee Deductions

There are two types of Merchant billing structures for fee collection, Net Billing and Statement Billing. Each process deducts fees from transaction funds in different ways.

  • In a Net Billing structure, the assessed fees are deducted from each transaction in the batch before funding of the Merchant’s FBO account occurs.

  • In a Statement Billing structure, the assessed fees for all transaction amounts for a set period (usually monthly), are recorded as individual entries and deducted from the Merchant’s FBO account or operating bank account as a single total.

Cutoff Time Impact on Transaction Funding and Withdrawals

Transaction settlement batches and daily withdrawals each have their own cutoff time. These cutoff times can significantly influence the timing of your deposits. To avoid any deposit disruptions or reconciliation discrepancies, adhere to the cutoff times outlined below.

Transaction Settlement Batch Cutoff

Transactions processed before the batch cutoff time are typically funded the following day.

However, any transaction completed after this cutoff point will result in a delay, potentially changing the date of the transaction settlement and subsequent funding.

Daily Scheduled Withdrawal (Payout) Cutoff

Scheduled withdrawals of the FBO account balance are processed before the daily cutoff and are typically deposited by ACH the following day.

However, any withdrawal scheduled after this cutoff point will result in a one-day delay in the depositing of withdrawn funds to the Merchant’s bank account.

Skip weekends/holidays: This toggle determines whether the disbursements are created on holidays and weekends to be released the next day that the ACH runs.

  • If Skip weekends/holidays is enabled, disbursements are created each day including during weekends & holidays.

    • Disbursements created during a weekend or holiday are paid out on the following business day.

  • If Skip weekends/holidays are disabled, disbursements are not generated during any day of the weekend or holiday.

    • Disbursements are created on the following business day or the next scheduled withdrawal date. This should only be set up on a Daily disbursement schedule.


Card Payment Transaction Funding Timeline

Card payment transaction funds are funded to the Merchant’s FBO account the day after the transaction is processed. Transaction funds are typically deposited by ACH to the Merchant’s bank account the morning after the FBO account is funded.

Transaction Batch Close

FBO Account Funded

Bank Account Deposit

Transaction Batch Close

FBO Account Funded

Bank Account Deposit

Monday

Tuesday

Wednesday morning

Tuesday

Wednesday

Thursday morning

Wednesday

Thursday

Friday morning

Thursday

Friday

Monday morning

Friday

Monday

Tuesday morning

Saturday

Monday

Tuesday morning

Sunday

Monday

Tuesday morning

eCheck Payment Transaction Funding Timeline

eCheck payment transactions, also known as “ACH payments”, are funded to the Merchant’s FBO account 3-5 business days after the transaction is processed. Transaction funds are typically deposited by ACH to the Merchant’s bank account the morning after the FBO account is funded.

Transaction Batch Close

FBO Account Funded

Bank Account Deposit

Transaction Batch Close

FBO Account Funded

Bank Account Deposit

Monday

Thursday*

Friday morning

Tuesday

Friday*

Monday morning

Wednesday

Monday*

Monday morning

Thursday

Tuesday*

Tuesday morning

Friday

Wednesday*

Thursday morning

Saturday

Wednesday*

Thursday morning

Sunday

Wednesday*

Thursday morning


Scenario - Card Payment Funding with Refunds

This scenario demonstrates an example of an average Merchant's settlement and payout flow when customer transaction refunds are issued during daily operations. This example shows what a Merchant should expect for the timeframe of processing as well as the handling of refunds.


Same-Day Card Payment Transaction Funding

The Card Payment Transaction Funding Timeline to expedite the funding process. Using the daily withdrawal schedule outlined above, you can see these “same-day” funded deposits reflected in the Merchant’s bank account the morning of the following business day.

Same-Day Funding Timeline

Merchants with same-day funding enabled will receive their settled funds in the afternoon following their morning batch close and settlement. This Merchant FBO account deposit will be available for withdrawal that evening.

Transaction Batch Close

FBO Account Funded

Bank Account Deposit

Transaction Batch Close

FBO Account Funded

Bank Account Deposit

Monday morning

Monday evening

Tuesday morning

Tuesday morning

Tuesday evening

Wednesday morning

Wednesday morning

Wednesday evening

Thursday morning

Thursday morning

Thursday evening

Friday morning

Friday morning

Friday evening

Monday morning

Saturday morning

Monday evening

Tuesday morning

Sunday morning

Monday evening

Tuesday morning


Reporting

When a transaction is funded for a Merchant FBO account and a withdrawal is created, the data is recorded and available for recordkeeping, reconciliation, and data tracking purposes as a Disbursement Summary report.

Click here to view more details on the Disbursement Summary report.