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 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 mis-keyed. 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.
Transaction Sweep Cycle Start | Transaction 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.
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.
Auto-batch closure
IMPORTANT!
If you are set up to automatically batch each day, your terminal must be powered on and connected to the network for the auto-close process to complete successfully.
Auto-close will automatically close the terminal batch at the end of each day for a connected, powered on terminal. If you are a business that accepts tips, you should be cautious about opting for auto-closure of your batch, especially if you operate with late business hours. Transactions with unadjusted tips will automatically close and any tips that have not been adjusted by that time will not be able to be entered.
The auto-close timing for a merchant account is set during the onboarding process. You may request that the timing change to accommodate your business needs. Contact us for assistance on changing your batch closure method.
WARNING!
if you use adjusted tipping (tip after purchase) and opt to auto-close your batch each day, you could lose tips when the batch closes if you have not finalized all of the tips prior to your auto-batch time. Auto-close will force close all transactions and tip adjustment will not be possible after closing the batch.
Manual batch closure
If you need to adjust tips at the end of the day, we recommend that you use a manual batch closure instead of automatically closing the batch at the end of the day. This will allow you to adjust tips prior to batching out. The manual batch process will vary depending on your solution.
Batch settlement reporting
Depending on your terminal type, batch settlement reports may print when the terminal batch is closed:
- The A80, A60 or A920 will print report(s) when batching. If a report fails to print, it is an indication that auto-batch process failed.
- The E700/E800 terminals will not automatically print a report. Close the shift in the point of sale app to generate a report.
Your settlement funding reporting is available through your Merchant Services account in Business Advantage 360 online banking.