Each passing week, this question is becoming more common place: "When am I going to receive my money?"  Many merchants are becoming more aware of the prospect of receiving funds the next day after batching.  The traditional 2-3 business day wait may be too long for some.  Fortunately, merchants can enroll in a next day funding program where their credit card processing funds are quickly deposited into their bank account, enabling merchants to have accessibility to the funds in as little as 12 hours after batching out the transactions.

Next Day Funding - 7 Common Questions Asked and Answered:

1) Q: What is next day funding?

    A: As previously mentioned, next day funding simply means gaining access to your credit card processing funds the following day after the batching process has taken place.

2) Q: Does everyone qualify for this service?

    A: Many processors do not offer this service.  If your selected merchant account provider does offer the service, the underwriting group will determine your eligibility.  The underwriters will evaluate your credit card score, nature of your business, the amount of time you've been in business, your intended processing limits, etc.  It's possible that your application will be approved, providing you with processing capability, without your receiving the added bonus of next day funding.  It's equally likely to qualify for this service once your application is approved.

3) Q: How late can I batch out and still receive my funds the next day?

    A: It varies among processors.  Typically, the cutoff point is 5-7 pm, EST. 

4) Q: How does it work?

     A: On the credit card processing application, you express your interest in receiving funds the next day after batching.  Assuming your application gets approved and you qualify for next day funding, the technical department typically builds the files for automated batching -- at a time before the "next day" cutoff point.  All transactions that are batched out move through the ACH network and eventually get posted by your bank the following day.

5) Q: Will I see the funds from all transactions that are batched out the next day?

    A: You should definitely see all Visa, MasterCard, and Discover transactions.  Many processors can now facilitate next day funding for American Express credit card transactions, too.

6) Q: Does the service cost extra?

    A: Many processors may very well charge a little higher rate for this value added service; some may not but it's important to look at the TOTAL fee structure to accurately compare proposals.

7) Q: Why should I apply for the service?

    A: You very well may decide that you can wait a day or two extra for funds to be posted into your account (under the traditional model.)  However, if you're looking to enhance cash flow, pay your operating expenses quicker, and grow your business, next day funding may just be for you -- especially for those who need their money yesterday.