8 Ways to Expedite Funds from Payment Processors

By Matt Rej

Cash flow is vital for the success of any business, and credit card processing sales often constitute a significant portion of incoming revenue. However, the time it takes for funds to reach your bank account after a credit card transaction can vary. This article highlights eight key tips to help you get your funds quickly from payment processors.

1. Know Your Processing Limits: Be aware of any weekly or monthly limits set by your credit card processing company. Exceeding these limits can trigger a hold on your account or even lead to termination. Inform your processor in advance if you anticipate a surge in sales to avoid suspicion.
2. Provide Documentation for High-Ticket Transactions: Large individual transactions may raise red flags, leading processors to hold funds. Obtain written invoices and customer signatures for significant purchases to verify sales and increase the chances of faster payment.
3. Reduce Chargebacks: Chargebacks, when customers dispute credit card charges, can result in withheld funds. Implement a customer-friendly return policy to minimize chargebacks and reduce the likelihood of delayed payments.
4. Avoid Keyed Transactions: Swiped or dipped credit card transactions process faster than manually keyed ones. Keyed transactions not only take longer to process but also incur higher processing fees. Minimize keyed transactions to avoid delays and suspicion from your processor.
5. Find the Right Payment Processor: Select a payment processor known for releasing funds quickly. Some reputable processors offer faster payouts, such as Payment Depot (24-48 hours), Helcim (two business days), and Square (instant digital wallet availability).
6. Maintain a High Bank Balance: Processors may request a bank statement while holding funds as a safeguard against chargebacks. A higher bank balance reassures them that you can cover potential chargeback costs, potentially expediting payment.
7. Optimize Your Batch Times: Settling credit card transactions at specific times can accelerate fund availability. Consult your processor to determine their cutoff time for next-day or two-day funding eligibility and submit batches accordingly.
8. Use Fraud Prevention Best Practices: Fraudulent transactions contribute to chargebacks and fund holds. Implement fraud prevention tactics to minimize fraudulent activity, protect your merchant account, and increase the likelihood of faster payments.

Conclusion:

Getting paid promptly for credit card transactions requires understanding and implementing best practices. By following the eight tips outlined above, merchants can enhance their chances of receiving funds quickly from payment processors.

A GOOD TIME TO INVEST

Alright, listen up! We know you're working day in and day out to make your dreams a reality. But amidst the challenges of running your own business, it's crucial not to neglect saving for retirement. We understand that it may not be the most exciting topic, but we've got some practical advice to help you close the retirement savings gap. Let's dive in and take control of our financial future!

Put at least 10% of income into retirement if you can:

• Let's start with a golden rule of retirement savings: aim to save at least 10% of your earnings annually. Think of it as paying yourself for all the hard work you're putting into your business. By setting aside a portion of your income, you'll be taking a proactive step towards securing a comfortable retirement.

Cut back on budget and redirect to savings:

• Take a closer look at your expenses and identify areas where you can cut back. By making a few strategic adjustments, you'll free up some funds that can be redirected towards your retirement savings.

Increase investment portfolio risk:

• While it's important to tread carefully, consider taking on a slightly higher level of risk in your investment portfolio. Just like in your business, taking calculated risks can yield higher rewards. Consult with a financial professional to ensure you're making informed decisions that align with your long-term goals.

Create a plan and stick to it:

• Craft a detailed plan that outlines your desired retirement lifestyle and the steps needed to achieve it. Set milestones along the way to keep yourself motivated, and most importantly, stick to the plan! Consistency is key when it comes to building a solid financial future.

Embrace the Magic of Dollar-Cost Averaging:

• Here's a secret weapon for your retirement savings: dollar-cost averaging. Think of it as a wizardly spell that smooths out the highs and lows of the market. With dollar-cost averaging, you invest a fixed amount of money at regular intervals, regardless of market conditions. This strategy allows you to buy more shares when prices are low and fewer shares when prices are high. Over time, it can lead to significant growth in your retirement savings.

Conclusion:

Don't let the retirement savings gap intimidate you. By implementing these practical strategies, you can take charge of your financial future. Remember, saving for retirement is not a sprint; it's a marathon. Stay disciplined, make informed decisions, and watch your retirement savings grow. Your hard work deserves a prosperous retirement, so start saving today and enjoy the fruits of your labor tomorrow!

About me

I have 15 years of experience in payments and specialize in helping local businesses stay competitive with Payment systems that grow sales and minimize costs.

At CMS we offer faster funding, local service, and more payment options for your customers.  Let’s connect and improve your bottom line. I'm happy to be a resource for you!

Nathan Ralls