Settlement Process
Description
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.
NOTE:
To inquire if your merchant services account is set up for Same Day or Standard Day funding, please contact us.
Funding time frames
The processing cutoff time and funding time will vary by funding type.
Transaction settlement and funding
Completed transactions are moved to settlement immediately. Any incomplete transactions such as an authorization-only or unadjusted tip sale will not be swept and funded until they are finalized. If you are using tip adjustment (on receipt tipping), all transactions will need to be adjusted.
Transactions can be voided until your funding cutoff time. After the cutoff time, voids can no longer be processed, and a refund must be issued instead.
NOTE:
Processing fees are not charged for voided transactions. Processing fees will be charged on refunds.
Terminal Batch Closure
Although transactions are captured and processed throughout the day, transaction details are still stored in the terminal. The batch closure at the end of each day preserves terminal memory and facilitates reconciliation by providing a batch report that shows daily totals needed for bookkeeping and statement reconciliation. Batch closure can be performed either automatically or manually each day, depending on how your account is setup.
NOTE:
If you receive an Invalid Request, Invalid Data, or Settle batch error message, these errors are generally caused by a stuck or reversed transaction/authorization or untipped transaction that was entered prior to settlement. Contact us for assistance.
Batch settlement reporting
Depending on your terminal type and solution, a batch settlement report may print when the terminal batch is closed. Your settlement funding reporting is available through your Merchant Services account in Business Advantage 360 online banking.