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:
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.
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 |
---|---|---|
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 |
---|---|---|
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 |
---|---|---|
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.