Category Archives: Next Day Funding

There are many reasons why businesses might experience a delay in receiving their ACH (automated clearing house) funds. They range from the type of merchant services provider chosen to elevated risk. Here is a look at why an ACH is delayed.

Merchant Services Provider-some providers, like PaymentMax, offer their clients next day funding, while other providers may only be able to offer funding in 3-5 days. When signing up for a merchant acccount ask how long it will typically take to receive your ACHs.

High Risk- if the person guaranteeing the merchant account has bad credit, or the merchant account is viewed as high risk the provider may ask for an ACH delay. The longer the ACH funds are held the lower the risk becomes.

Large Volume or Ticket Amount-if the business declares a high volume amount, or a large average ticket amount the provider may delay ACH funds. This is also related to the elevated risk factor associated with high volume and ticket amounts.

When applying for a merchant account  if you are asked for a ACH delay ask for the reason. It could be something that can be worked out with proper paperwork and declarations. If it cannot be waived, take a look at your business. How important is cash flow to your operations? If you are a retail store with large amounts of cash sales, ACH funding times may not be so urgent. However, if you remodel homes you may need your ACH funds right away to purchase supplies. Ensure you choose a provider who offers fast funding.

If your merchant account provider cannot waive the ACH delay, take comfort in knowing that most ACH delays only last around a year, and can be lifted after a track record has been established.