Next-Day Funding Merchant Services
Need funds fast? Some payment processing companies can offer next-day or even same-day funding, but only to certain businesses and under certain circumstances.
When you need merchant services with next-day funding, the most important thing is to select a payment processor that can accommodate you. The best credit card processing companies can provide next-day funding, and some even offer same-day funding or instant transfers.
There are steps small business owners can take to keep their merchant accounts in good standing and to remain eligible for next-day transfers. If you want to get your funds quickly, you need to be a responsible merchant, establish a good processing history, minimize risky transactions, and batch out daily by the cutoff time. You might also have to pay an additional fee if you truly need “instant funding.”
Keep reading to learn more about how to get payment processing with next-day funding, and some important things to know about merchant accounts that offer fast funding.
Table of Contents
What Is Next-Day Funding?
Unlike standard ACH transfers which take two to three days to hit your bank account, next-day merchant services can deliver funds from a credit card sale to your account the following business day. Next-day funding is offered by various merchant account providers, though generally only to low-risk account holders in good standing.
Some payment processors also offer same-day funding or even instant funding, for an added fee.
ACH Transfers vs. Next-Day & Same-Day Funding
|Sale Completed*||Same Day||Next Business Day||2-3 Business Days|
|Standard ACH Transfer||Funds received|
|Next-Day Funding||Funds received|
|Instant Funding||Funds received|
*Batch must be sent by cutoff time
Types Of Merchant Services With Fast Funding
How Soon Do You Need Your Funds?
Fast funding sounds great on paper, but since it can often come with added expenses or limitations, you should consider which, if any, type of expedited funding fits your business model.
Next-day funding should be sufficient for businesses that occasionally need to smooth out cash flow with faster deposits. Same-day deposits will interest businesses that make a lot of sales during non-business hours and would regularly miss the batch deadlines for next-day funding.
As for instant deposits, you’ll want to consider the value of the platform you’re signing up for and to what degree you’re willing to centralize your accounts under it. If you’re cool with having your payment service double as a money-storing account, instant deposits are a significant perk.
The Risks Of Third-Party Processors With Same-Day Funding
Many so-called instant merchant accounts advertise same-day funding or even instant transfers. However, processors that approve merchants right away—namely, third-party payment processors— are actually more likely to withhold your funds down the road since they don’t thoroughly evaluate your business’s risk profile upfront.
6 Things You Can Do To Keep Your Same-Day Or Next-Day Funding
Many companies manage to keep their merchant accounts in good standing. There are things you can do to minimize your chances of triggering an account freeze or funding hold:
What If You Can’t Get Next-Day Funding?
High-risk merchants may not qualify for next-day funding even if that processor offers next-day merchant services to low-risk businesses. However, some merchant account providers cater to high-risk businesses and still offer relatively fast funding.
If you are a high-risk business looking for a better merchant account with faster transfers, learn about the best high-risk merchant account providers.