How to speed up credit card processing time

Picture this: a happy customer just snagged the perfect handmade pottery piece from your shop. They smile as they tap their credit card, and you, the proud business owner, are already imagining those funds hitting your bank account. Sweet! Easy peasy, right?

Well, not so fast. There's a bit of behind-the-scenes action that needs to happen, and it's called credit card processing. It's like a little financial relay race, and it takes time for the baton (aka, your money) to get from the customer's card to your bank account. Let's take a peek at how long this race usually lasts.

How long does it take for credit card payments to process?

Typically, it takes 1-3 business days for funds to become available in your account. Think of it like a little journey for the money. It starts at the customer's bank, takes a quick detour through the credit card company (such as Visa or Mastercard), and if all looks clear, it’ll arrive in your bank account. While it's pretty fast overall, each step has its own processing time that you need to keep in mind.

Why do credit card payments take long to process?

Credit card payments have to go through a number of steps before they are fully processed:

• Authorization
• Batching
• Clearing
• Funding

Authorization: When a physical credit card is tapped on your credit card machine or the credit card info is entered online, a request is sent to the credit card issuer (customer's bank) to make sure the card is valid and there are sufficient credit for them to make the purchase. This usually happens within seconds.

Batching: At the end of each day, the business sends all the credit card transactions from the day to their payment processor.

Clearing: This is where the actual transfer of funds begins and can take 1-2 business days.

• Once the batch is received by the payment processor, they send the transaction details to the card network.
• The card network then routes the information to the customer's bank for final approval and transfer of funds.

Funding: This is the final step where the funds move from the customer's bank to the merchant’s bank account. The time for this step can vary depending on the merchant's bank and payment processor.

Why are my credit card payments delayed?

Sometimes, that 1-3 business day processing window can stretch out and it can be frustrating when you're expecting those funds. Here are some common reasons why your credit card payments may be delayed:

• The payment was processed on a weekend or holiday
• You recently opened a new merchant account or operate a high-risk business
• The transaction triggered security checks or flags from credit card processors

1. Weekends and holidays

Credit card transactions are typically processed only on business days, meaning weekends and holidays can delay the process. Transactions that happen right before or during these times might not get processed until the next business day. Think of it like the mail – it doesn't move as quickly on Sundays!

2. New accounts or higher risk businesses

When you're just starting out with a payment processor, or if your business has specific needs, they might take a little more time to process your funds initially. This extra attention at the beginning helps make things run much smoother in the long run and ensures payments will go through without a hitch as your business grows. It's all about investing a little more effort upfront to create a solid and reliable payment flow for your business.

TIP: Just starting out with a new payment processor? There are a couple of easy things can do right away so you can start processing payments without delay. First, double-check that you've correctly linked your business bank account to the system. Also, take your time when filling out the application and make sure all the information is complete and accurate.

3. Security checks and flags

Sometimes a transaction might trigger a flag in the system if there's something that looks a bit out of the ordinary. When this happens, the payment processor or the customer's bank may put a temporary hold on the funds and require additional information. It's kind of like the post office receiving a suspicious package and checking it before it goes out for delivery.

For Example: Let's say you sell handmade jewelry online, and your average order is around $50. Then, out of the blue, your orders are suddenly worth over $1000, all being shipped to another country you haven’t done business with.

That big jump in the order amount and the new international shipping location could look a bit unusual, so the payment processor might just put a quick hold on the funds and reach out to confirm everything is on the up. It's just a way to try to catch anything that might be a bit fishy and keep everyone's transactions secure.

How can I receive my credit card payments faster?

Waiting 1 to 3 business days for your money to show up can feel like ages when you're running a business. You've got bills to pay, shelves to fill, and you just want to see that cash you worked so hard for in your account.

The good news is, some payment processors are now using some pretty cool technology to speed things up. They're tapping into Real-Time Payment rails (RTP) and the FedNow network. Think of these like super-fast digital highways for money. Because of these networks, providers can offer next-day, same-day, or even instant funding. Sometimes, this faster access comes with extra fees (typically 2%), but other times, it's offered for free.

But why pay to get your funds faster? Unlike competitors, Helcim gives you next business day deposits at no cost, as long as your bank is eligible. No activation and no hidden fees.

Pro tip: close your batch by 7:00 PM MT

If you're processing credit or debit card payments, the time you close your batch could impact how quickly you receive your funds. At Helcim, batches closed by 7:00 PM Mountain Time are more likely to be deposited the next business day, based on our payment payout schedules.

Just a heads-up: if you continue accepting payments after that time, you might end up with multiple batches in one day. That could mean a bit more work when reconciling your deposits—but for many merchants, the trade-off is worth it to get paid sooner.

How to I set up Credit Card Faster Deposits

First, you’ll need to sign up as a Helcim merchant! Once you have your merchant account set up, there is zero additional registration required to get access to Faster Deposits.

The really neat part is that if your bank is already connected to either the RTP network or the FedNow or Real-Time Payments (RTP) network, Faster Deposits will start automatically. Check the list of supported banks to see if you are qualified for fast track funding.

• RTP Participating Financial Institutions | The Clearing House
• FedNow Service Participants and Service Providers | Federal Reserve Financial Services

FAQ

What factors can cause delays in credit card payment processing?

Several factors can lead to potential delays in receiving your credit card payments. Weekends and holidays often slow down processing times as financial institutions operate on different schedules. If you are a new business, or have some unusual transactions come through, there are often additional security checks that can cause delays. In these cases, the payment processor will quickly reach out for more details, and responding promptly with the requested information will help speed up the release of your funds.

I'm expecting a much larger than usual transaction soon. Is there anything I should do?

Yes! It's a great idea to give your payment processor a heads-up if you know you'll be processing a transaction that's significantly larger or different from your usual activity. Reaching out to their support team in advance can help prevent any unexpected security flags or delays. This proactive communication can ensure a smoother processing experience!

How do weekends and holidays affect credit card payment processing times?

Financial institutions generally do not process payments on weekends or holidays, meaning a batch closed on a Friday might not show until the Monday.

Can I do anything to get my credit card payments faster?

Yes! Some processors can provide next business day deposits for an additional fee. However, if you process your payments with Helcim, you can receive free next business day deposits with Faster Deposits.