Gross deposits explained: What they mean for your cash flow and how it makes your life easier

When it comes to running a business, payments play a dual role. On one side, you’ve got payment processing—taking customer payments. But the flip side is just as important: getting those funds into your bank account. This is where terms like bank settlement, funding, gross deposits, and net deposits come into play. If these words make you want to hit snooze, don’t worry—we’re here to break them down without the dull financial jargon.

What does deposit mean in payment processing?

When you accept payments, the funds eventually make their way to your bank account—this is a process called bank settlement. Whether you get the full amount or just a portion depends on whether your merchant provider is offering gross or net deposits.

• Gross deposits: Imagine selling a delicious pie and getting paid for the whole thing. That’s gross deposits—no deductions for processing fees upfront, so you get the full pie (or payment) straight into your account. The deductions come after as a separate line item in your account and can be done daily or monthly.

• Net deposits: Now picture selling that same pie, but before you get paid, someone takes a slice for themselves. That’s net deposits. Sure, it covers the fees right away, but it can make reconciling your accounts feel like trying to put a puzzle together without all the pieces. Imagine having to manually add back processing fees to your deposit amounts just to figure out your total sales for the month—what a headache!

How gross deposits impact your cash flow

Full earnings deposited first

Gross deposits mean no more waiting around for your full earnings. Instead of having processing fees nibble away at your deposits before they reach your account, you get the entire amount you’ve earned upfront. What you see in your sales is exactly what lands in your account—no surprises, no shortfalls, just the full sum of your hard work.

Easy reconciliation and fewer headaches

With gross deposits, fees are processed separately, keeping your books clean and clear. This makes it easier to track exactly what’s coming in and going out, giving you a crystal-clear view of your finances without the hassle of digging through a mess of transactions.

Predictable cash flow

Gross deposits offer the ultimate in financial predictability. Since you always know the exact amount being deposited, managing your cash flow becomes a breeze. Whether you’re planning for payroll, stocking up on inventory, or just keeping the lights on, you’ll have the confidence to plan ahead without any guesswork.

Net deposits vs. gross deposits: Which one wins?

While net deposits have their merits, gross deposits are the clear choice for businesses prioritizing simplicity and speed. If you value straightforward, easy to manage financial processes, gross deposits are the way to go. However, different payment providers offer various funding options, so it's essential to consider these when choosing the right provider for your business.

Common payment providers and their funding types

Below are some popular payment providers for small businesses and how they handle your funding, so you can choose the best option for your business.

Ready to make your cash flow simpler and faster?

With Helcim, you can do just that—with less hassle. Sign up today and enjoy the benefits of gross deposits: fewer fees, easy reconciliation, and faster access to your funds. Keep more of what you earn—because you deserve the whole pie, not just a slice

FAQs

1. What’s the big deal with gross deposits vs. net deposits?

Imagine selling a whole cake, and instead of getting paid for the entire cake, someone takes a slice before handing you the cash. That’s net deposits. Gross deposits, on the other hand, mean you get the full cake—no sneaky bites taken out upfront.

2. How do gross deposits affect my cash flow?

You get the full amount of your sales upfront making it easier to pay bills, manage your books, and reconcile your expenses.

3. Is it easier to reconcile accounts with gross deposits?

Absolutely. Since gross deposits show the full sales amount without deductions, reconciling your accounts is much simpler. You’ll see the same amount in your sales records and bank account, making it easier to keep track of your finances.

4. Are there any fees associated with gross deposits?

With Helcim, gross deposits are built-in. There are no other fees associated with being on gross deposit funding . You won’t have to worry about hidden charges or complicated fee structures—just straightforward, predictable payments.

5. How can I sign up for Helcim?

Just complete the sign up form online and you’ll automatically benefit from our gross deposit system when your account is approved! It’s easy and free!