Transaction {{glossary.funding}} refers to the process of settling captured {{glossary.Merchant}} transaction funds from card and eCheck payments to be deposited in your {{glossary.Payrix Pro}} {{glossary.available balance}} (FBO account) and made available for {{glossary.withdrawal}} to your bank account on file. This reference guide outlines funding flows for Card and eCheck payment transactions and the general timing of each.

Before you begin, review the following funding terminology:

Funding: This is settling captured transaction funds to be sent to the Merchant’s FBO account.
Payout: This is a scheduled event specifying when funds will be credited/debited and can be set to run daily, weekly, monthly, annually, or single for a one-off payment. Payouts can be set up by scheduling a Withdrawal in the {{glossary.Portal}}.
Disbursement: This is the record of funds being credited or debited to/from the merchant bank account based on the payout schedule.
FBO Account: This is an {{glossary.entity}}’s Payrix Pro-hosted {{glossary.For Benefit Of (FBO) account}} displayed on the Portal as the “Available Balance”. This is the first account where processed and settled funds are deposited, a process called “Funding”.
Bank Account: This is the external bank account provided by the Merchant during signup and used in payout configuration (Scheduled Withdrawal) as the destination account for FBO Account funds to be disbursed. This is sometimes called a “disbursement account” or “{{glossary.operating account}}”.

Note
In the Portal, Payouts are shown under Withdrawal Schedules, and completed Disbursement events are represented underneath Withdrawal History.

Transaction Funds Settlement

Payrix Pro submits transaction settlement batches daily to the {{glossary.processor}} for both credit cards and ACH transactions at 9:30 PM EST. Each {{glossary.batch}} is composed of all sales and refund activity that has been captured for processor settlement within the daily period.

Transactions processed after 9:30 PM EST will be captured in the next day's batch.
Card payment transactions are settled, then the Merchant’s FBO account is funded the next business day.
eCheck payment transactions are settled, then the Merchant’s FBO account is funded within 3-5 business days.

When the Merchant’s FBO account is funded from settled transaction amounts, the funds will immediately be made available for withdrawal manually or automatically using the recommended 100% Daily Withdrawal Schedule.

Important!
Specific bank account deposit timing may vary if the Merchant’s bank experiences delays in releasing funds.

Note
Transactions can be flagged as high-risk by the processor, resulting in a several-day hold that will delay the transaction from being funded and available for withdrawal. For questions regarding a transaction on hold or what constitutes a high-risk transaction, you can submit a Partner Services ticket or Risk Team ticket.

Fee Deductions

There are two types of Merchant billing structures for fee collection: Net Billing and Statement Billing. Each process deducts fees from transaction funds in different ways.

In a Net Billing structure, the assessed fees are deducted from each transaction in the batch before funding of the Merchant’s FBO account occurs.
In a Statement Billing structure, the assessed fees for all transaction amounts for a set period (usually monthly), are recorded as individual entries and deducted from the Merchant’s FBO account or operating bank account as a single total.

Note
If a Merchant is also assessed any form of payout fee, this will be applied during the withdrawal stage and be collected.

Cutoff Time Impact on Transaction Funding and Withdrawals

Transaction settlement batches and daily withdrawals each have their own cutoff time. These cutoff times can significantly influence the timing of your deposits. To avoid any deposit disruptions or reconciliation discrepancies, adhere to the cutoff times outlined below.

Transaction Settlement Batch Cutoff

Transactions processed before the batch cutoff time are typically funded the following day.

However, any transaction completed after this cutoff point will result in a delay, potentially changing the date of the transaction settlement and subsequent funding.

Note
The cutoff time for including a transaction in the day’s batch is 9:30 PM EST.

Daily Scheduled Withdrawal (Payout) Cutoff

Scheduled withdrawals of the FBO account balance are processed before the daily cutoff and are typically deposited by ACH the following day.

However, any withdrawal scheduled after this cutoff point will result in a one-day delay in the depositing of withdrawn funds to the Merchant’s bank account.

Note
The cutoff time for completing a scheduled withdrawal of FBO account funds is 6:00 PM EST.

Important!
Withdrawals are not processed on US holidays and weekends. Holidays include:
New Year's Day: January 1
Martin Luther King Jr. Day: Third Monday of January
President’s Day: Third Monday of February
Memorial Day: Last Monday of May
Independence Day: July 4
Labor Day: First Monday of September
Columbus Day: Second Monday of October
Veterans Day: November 11
Thanksgiving Day: Fourth Thursday of November
Christmas Day: December 25

Skip weekends/holidays: This toggle determines whether the disbursements are created on holidays and weekends to be released the next day that the ACH runs.

If Skip weekends/holidays is enabled, disbursements are created each day including during weekends and holidays.
- Disbursements created during a weekend or holiday are paid out on the following business day.
If Skip weekends/holidays are disabled, disbursements are not generated during any day of the weekend or holiday.
- Disbursements are created on the following business day or the next scheduled withdrawal date. This should only be set up on a Daily disbursement schedule.

Card Payment Transaction Funding Timeline

Card payment transaction funds are funded to the Merchant’s FBO account the day after the transaction is processed. Transaction funds are typically deposited by ACH to the Merchant’s bank account the morning after the FBO account is funded.

Note
The timeline below applies to a Merchant 100% Daily Withdrawal Schedule (i.e., an automatic daily disbursement of all FBO account funds to the Merchant’s bank account).

Transaction Batch Close	FBO Account Funded	Bank Account Deposit
Monday	Tuesday	Wednesday morning
Tuesday	Wednesday	Thursday morning
Wednesday	Thursday	Friday morning
Thursday	Friday	Monday morning
Friday	Monday	Tuesday morning
Saturday	Monday	Tuesday morning
Sunday	Monday	Tuesday morning

eCheck Payment Transaction Funding Timeline

eCheck payment transactions, also known as ACH payments, are funded to the Merchant’s FBO account 3-5 business days after the transaction is processed. Transaction funds are typically deposited by ACH to the Merchant’s bank account the morning after the FBO account is funded.

Note
The timeline below applies to a Merchant 100% Daily Withdrawal Schedule; that is, an automatic daily disbursement of all FBO account funds to the Merchant’s bank account.

Transaction Batch Close	FBO Account Funded	Bank Account Deposit
Monday	Thursday^*	Friday morning
Tuesday	Friday^*	Monday morning
Wednesday	Monday^*	Monday morning
Thursday	Tuesday^*	Tuesday morning
Friday	Wednesday^*	Thursday morning
Saturday	Wednesday^*	Thursday morning
Sunday	Wednesday^*	Thursday morning

^* This timeline is based on the earliest possible funding time for eChecks (3 business days). Please note that eChecks can take up to 5 business days to complete settlement to fund the Merchant FBO account for later withdrawal.

Scenario: Card Payment Funding with Refunds

This scenario demonstrates an example of an average Merchant's settlement and payout flow when customer transaction refunds are issued during daily operations. This example shows what a Merchant should expect for the timeframe of processing as well as the handling of refunds.

Note
The platform is configured to use a Merchant’s FBO account balance to handle transaction refunds and “lost” chargeback dispute amounts. See the flowchart below.

The following is an example scenario and flowchart for transaction funding with refunds.

Example: Refund Amounts Debited from FBO Account

Day 1: A Merchant has an FBO account balance of $500.00 from previously settled funds, ready to be disbursed to the Merchant’s bank account.
Day 2: The Merchant generates $300 in credit card transactions, but also issues a transaction refund of $100.00 to resolve a customer issue.
- The refund amounts are immediately debited from the FBO account instead of the Merchant’s bank account, making the final amount in the FBO account balance to be disbursed to their bank account $400.00.
Day 3: Since the refund amount will not be deducted from the previous day’s sales settlement batch calculation ($300 in sales and $100 in refunds), the Merchant’s settled amount for yesterday’s transactions is $300.

Same-Day Card Payment Transaction Funding

The Card Payment Transaction Funding Timeline to expedite the funding process. Using the daily withdrawal schedule outlined above, you can see these same-day funded deposits reflected in the Merchant’s bank account the morning of the following business day.

Notes
The cutoff time for including a transaction in the same-day funding batch is 10:30 AM EST.
Additional information may be required from {{variable.Partner}}s by the Payrix Pro Risk Team to qualify for same-day funding. To qualify, individual transactions cannot exceed $1,000,000 per Merchant ID (MID). These transactions will automatically default to the standard card payment funding process and timeline.

Same-Day Funding Timeline

Merchants with same-day funding enabled will receive their settled funds in the afternoon following their morning batch close and settlement. This Merchant FBO account deposit will be available for withdrawal that evening.

Note
The timeline below applies to a Merchant's 100% Daily Withdrawal Schedule; that is, an automatic daily disbursement of all FBO account funds to the Merchant’s bank account.

Transaction Batch Close	FBO Account Funded	Bank Account Deposit
Monday morning	Monday evening	Tuesday morning
Tuesday morning	Tuesday evening	Wednesday morning
Wednesday morning	Wednesday evening	Thursday morning
Thursday morning	Thursday evening	Friday morning
Friday morning	Friday evening	Monday morning
Saturday morning	Monday evening	Tuesday morning
Sunday morning	Monday evening	Tuesday morning

Reporting

When a transaction is funded for a Merchant FBO account and a withdrawal is created, the data is recorded and available for recordkeeping, reconciliation, and data tracking purposes as a Disbursement Summary report.

Click here to view more details on the Disbursement Summary report.