Settlement Funding Process

February 8, 2024

Description

An overview of the Settlement Funding process

What's in this article?

Settlement Funding is the process used to receive funds when accepting credit card payments. Bank of America offers two funding types: Same Day Funding or Standard Day Funding. The funding type is determined during the account opening process.

Same Day Funding: receive funding the same day as the transaction date. Funding occurs 365 days a year including holidays and weekends.
Standard Day Funding: receive funding on the next business day after the transaction date. Funding occurs every weekday (Monday - Friday) except for holidays.

Funding time frames

The processing cutoff time and funding time will vary by funding type.

Same Day Funding Time Frames

You have a choice of six processing cutoff and funding times. Funding will occur the same day, approximately two and a half hours after the processing cutoff time. The funding time can be changed by contacting us. Any changes made to the funding time will update on the following business day, including weekends and holidays.

NOTE:
Funding times are shown below in Eastern Time (ET), however funding times will occur during your local time zone.

table of same day funding schedule
Processing Cutoff Times	Funding Times	Funding Schedule
1:30 am ET 5:30 am ET 9:30 am ET 1:30 pm ET 5:30 pm ET 8:30 pm ET	4:00 am ET 8:00 am ET 12:00 pm ET 4:00 pm ET 8:00 pm ET 11:00 pm ET	Funded seven days a week, including holidays.

Standard Day Funding Time Frames

You have one cutoff and funding time. Funding will occur on the next business day. Weekend processing will fund on Monday. Funding does not occur on holidays, funding will occur on the next business day after the holiday. The funding time cannot be changed.

table of standard funding schedule
Processing Cutoff Time	Funding Time	Funding Schedule
8:30 pm ET	11:00 am ET	Funding occurs the next business day, excluding weekends and holidays.

Batch sweep timing

Completed transactions are swept to settlement once an hour, at the 30 minute mark. Any incomplete transactions such as authorization only or unadjusted tip sale will not be swept and funded. These transactions will hold over into the next batch cycle and if complete by that time then they will be funded. If you are using tip adjustment, all transactions will need to be adjusted.

Once a transaction has been swept, it can no longer be voided. If a reversal is needed, then a refund will have to be completed.

Scenario: A transaction is completed at 1:25 and is miskeyed. The time frame for this transaction to be voided is 4 minutes. If the transaction is not voided by 1:29 then a refund would have to be processed instead of a void.

NOTE:
Processing fees are not charged for voided transactions. Processing fees will be charged on refunds.

table of batch sweep cycle start and end times
Batch Sweep Cycle Start	Batch Sweep Cycle Ends ^*
12:30	1:29
1:30	2:29
2:30	3:29
3:30	4:29
4:30	5:29
5:30	6:29
6:30	7:29
7:30	8:29
8:30	9:29
9:30	10:29
10:30	11:29
11:30	12:29

^* After this time a void cannot be completed on any transaction(s) that occurred during this batch sweep cycle. A new batch sweep cycle begins at the half hour mark.