As we have established in the first two parts of this blog, credit card processing involves much more than most merchants and their customers are aware of. It is not as simple as a customer just swiping their credit card and receiving a receipt. There are three stages in total for processing a credit card that are taking place behind the scenes.
After a credit card payment has been authorized and settled, there is still one more phase of the process that must be completed. This stage is known as “funding.” Business owners interested in learning about the process will benefit from having the knowledge on all of the working components needed to complete a sale from start to finish successfully.
What is Funding?
The process of funding is actually an extension of the settlement phase and the term is typically interchanged with settlement – but for in-depth informational purposes we are referring to the two as separate stages. This stage occurs when the processor deposits money into the merchant’s bank account in order to compensate them for their customer’s transaction.
The credit card process is reimbursed funds from the correct payment brand such as Visa or MasterCard. This allows funds to be released to the merchant – signaling the end of the actions taken to process a credit card payment.
Funding Deadlines and Holidays
Merchants who are expecting their customer’s transactions to be funded quickly should be aware there are deadlines and holidays that could hinder the process. Funding will not be completed on weekends, as well as U.S. bank holidays.
Funding will not take place on the following 2016 holidays.
January 1, 2016 – New Year’s Day
January 18, 2016 – Martin Luther King Jr. Day
February 15, 2016 – Presidents Day
May, 30 2016 – Memorial Day
July 4, 2016 – Independence Day
September 5, 2016 – Labor Day
October 10, 2016 – Columbus Day
November 11, 2016 – Veterans Day
November 24, 2016 – Thanksgiving Day
December 26, 2016 – Christmas Day*
*Holiday falls on a Saturday and will be observed on Monday.
If you are interested in learning more about processing credit card transactions or how this process is applied to your business, Regulated Payment Systems has the knowledge and experience to answer any questions – all while saving you money on the process. Give us a call at 800-471-6100 today!