Credit Card Processing Merchants with Next Day Funding

Credit Card Processing Merchants with Next Day Funding

Next day funding is a payment processing feature that allows merchants to get their payouts in a single business day, without the need to wait on standard holds. It’s one of the most important features merchants can weigh when selecting the right payment processing partner. Not all merchant services companies offer next day funding, and even among those that do, the payout terms can differ. Many merchants simply take funding terms for granted or assume they don’t have any options when it comes to their payouts. But that couldn’t be further from the truth. So, how does next day funding work, why is it so important to your business, and how can you access it? 


How Next Day Funding Changes Payment Processing

Funding describes the process of getting the money from your batched transactions into your bank account. Payout is obviously an extremely important part of payment processing, and how your processing partner handles it can have a huge impact on your business. Unfortunately, most merchants run into a frustrating and sometimes costly hurdle when it comes to payouts – standard holds. 

Standard Holds

Standard holds describe the set waiting periods between when you batch your transactions, and the processor actually releases the funds into your account. Standard holds are extremely common across the industry, and for good reason. They represent a way for payment processors to reduce risk, ensuring that they won’t be left holding the bill in the case of fraud or insolvent merchants. Unfortunately, that risk mitigation strategy often results in funds being held for two business days, three business days, or, in some extreme cases, even longer. 

How Next Day Funding Works

Next day funding is designed to recognize merchants with a long history of trustworthy processing operations and reward them by putting the money into tier accounts faster. With next day funding, a merchant can receive their payout in as little as ten hours, as opposed to the two or three-day minimums imposed by most processors. 

With standard next day funding operations, the payment processor sets a cutoff time, and any transactions batched before that time will be paid out the very next business day. Any transactions batched after the cutoff time will be available one day later – still resulting in the money hitting your bank account faster than it would under most standard holds. 

Consider, for example, Processor A offering next day funding with a 6:00 pm EST cutoff compared with Processor B imposing a set two-business-day hold:

Transaction Submitted Funds Available
Processor A 5:30 pm EST Monday Tuesday Morning
Processor A 6:30 pm EST Monday Wednesday Morning
Processor B 5:30 pm EST Monday Thursday Morning


What Next Day Funding Means for Your Business

Next day funding ensures your money will hit your bank account faster, and, unsurprisingly, that can have some significant impacts on your business. Specifically, your cash flow, your planning, and your emergency preparedness will all benefit from eliminating standard holds and accessing next day funding. 

Healthier Cash Flow

Cash is the lifeblood of your business, and healthy cash flow ensures you can always meet key short-term expenses ranging from payroll to interest payments and beyond. By putting your money in your pocket faster, next day funding helps shore up your company’s cash flow, improving your financials and providing additional peace of mind. 

Better Emergency Resilience

When emergencies pop up, they rarely provide warning, and you need to be able to react accordingly and immediately. Having to wait for money when you need it most can undermine your ability to deal with surprises and adds an enormous amount of unneeded stress to emergencies. Next day funding helps ensure you’ll always have the money you need on hand when things go off the rails temporarily. 

Easier Planning

Knowing your funds will be available almost immediately makes planning easier in the short term. Something as simple as bringing on extra staff or product for a busy night or holiday can be a challenge when standard holds delay your payouts. Next day funding helps ensure you’ll have the flexibility and confidence to make short-term planning decisions around everything from staffing to inventory and beyond. 


Accessing Next Day Funding

When processors offering next day funding wave the standard hold, they’re waving their safety net, too. As a result, generally only merchants with a strong history of sales and trustworthy operations are eligible. If that sounds like your business, then your first step is getting set up with a processor that offers next day funding. If your current processor can’t offer relief from standard holds, consider making the switch to BAMS. 


BAMS next day funding program offers merchants a 9:00 pm EST cutoff – one of the latest in the industry. Eligible payouts hit your bank by 7:00 am EST the following business day – as little as ten hours later. BAMS also offers the industry’s lowest transaction fees, thanks to our interchange-plus pricing model. 

To find out more about how a BAMS merchant account can lower your fees and get you paid out faster, reach out to a member of the team or start your comprehensive five-point price comparison today.