How Long Does It Take for Payments to Process and Deposit Through QuickBooks Merchant Services?

Understanding the payment processing times with QuickBooks Merchant Services is crucial for managing your business cash flow effectively. QuickBooks Merchant Services offers a variety of payment options including credit cards, debit cards, ACH bank transfers, and mobile payments. Each payment method has its own processing time and deposit schedule. 

We’ll discuss each payment method in detail, the typical processing times, and the factors that can affect these times. Additionally, we will provide expert recommendations on how to optimize your payment processes and ensure timely deposits.

Credit Card Payments

Processing Times

Credit card payments are one of the most commonly used methods for both in-person and online transactions. When a customer makes a payment using their credit card, the transaction goes through several stages before the funds are deposited into your business bank account.

1. Authorization: The first step is the authorization process, where the credit card issuer verifies that the customer has sufficient funds or credit limit to cover the transaction. This typically takes a few seconds to a few minutes.
2. Batching: At the end of each business day, your merchant account batches the day’s transactions and sends them to the payment processor. This step usually happens overnight.
3. Processing: The payment processor sends the batch to the customer’s credit card issuer for approval. This step can take 1-2 business days.
4. Settlement: Once approved, the funds are transferred from the credit card issuer to your merchant account. The settlement process usually takes 1-2 business days.

Total Time for Deposit

In total, credit card payments typically take between 1 to 3 business days to be processed and deposited into your bank account. However, this time frame can vary depending on your bank and the specific terms of your merchant agreement.

Factors Affecting Processing Times

Several factors can influence the processing times for credit card payments:

• Bank Holidays: Transactions processed on or near bank holidays may experience delays.
• Weekends: Payments processed on weekends are usually delayed until the next business day.
• High Volume Periods: During peak business periods, such as holidays, processing times may be longer due to increased transaction volumes.

Debit Card Payments

Processing Times

Debit card transactions are processed similarly to credit card transactions, but there are some differences due to the nature of debit cards.

1. Authorization: The bank verifies that the customer has sufficient funds in their account to cover the transaction.
2. Batching and Processing: Similar to credit cards, the transactions are batched and sent for processing.
3. Settlement: The settlement process for debit cards can be quicker, with funds often being available within 1-2 business days.

Total Time for Deposit

Debit card payments generally take 1 to 2 business days to be deposited into your bank account. The faster processing times are due to the direct link to the customer’s bank account, which reduces the need for intermediary steps.

ACH Bank Transfers

What Are ACH Payments?

ACH (Automated Clearing House) payments are electronic bank-to-bank transfers that are often used for direct deposits, bill payments, and recurring transactions. They are also known as eChecks.

Processing Times

ACH payments have a different processing timeline compared to card payments.

1. Initiation: The customer initiates the payment by providing their bank account information.
2. Batching: Similar to card payments, ACH transactions are batched and sent to the ACH network.
3. Processing: The ACH network processes the transaction and sends it to the customer’s bank for approval. This step usually takes 1-2 business days.
4. Settlement: Once approved, the funds are transferred to your bank account. This can take an additional 1-2 business days.

Total Time for Deposit

ACH payments typically take between 3 to 5 business days from initiation to deposit. This longer timeframe is due to the additional verification steps involved in processing bank transfers.

Factors Affecting Processing Times

• Bank Holidays and Weekends: As with card payments, ACH transactions are affected by bank holidays and weekends.
• Verification Requirements: Additional verification requirements for new customers or large transactions can extend processing times.
• Network Delays: Delays within the ACH network itself can also impact processing times.

Mobile Payments

How Mobile Payments Work

Mobile payments, including those made through mobile wallets like Apple Pay, Google Pay, and Samsung Pay, are processed similarly to credit card payments.

1. Authorization: The payment method is verified and authorized.
2. Batching and Processing: Transactions are batched and processed along with other card transactions.
3. Settlement: Funds are transferred and settled into your merchant account.

Total Time for Deposit

Mobile payments generally follow the same timeline as credit card payments, taking 1 to 3 business days for the funds to be deposited into your bank account.

Online Payments

How Online Payments Work

Online payments processed through your website or e-commerce platform can be made using credit cards, debit cards, or ACH transfers.

1. Authorization and Verification: The payment gateway verifies and authorizes the transaction.
2. Batching and Processing: Transactions are batched and processed.
3. Settlement: Funds are settled into your merchant account.

Total Time for Deposit

The deposit times for online payments vary based on the payment method used. Credit card and debit card payments take 1 to 3 business days, while ACH payments take 3 to 5 business days.

Learn more about integrating QuickBooks Merchant Services with QuickBooks Online.

Expert Recommendations for Optimizing Payment Processing Times

Streamline Your Payment Processes

1. Regular Batching: Ensure that your transactions are batched and sent for processing daily to avoid delays.
2. Monitor Transactions: Keep an eye on your transactions to quickly identify and resolve any issues that may cause delays.

Choose the Right Payment Methods

1. Encourage Card Payments: While ACH payments have lower fees, card payments are faster and may improve your cash flow.
2. Utilize Recurring Payments: For regular billing, set up recurring payments to ensure timely and consistent deposits.

Enhance Security and Compliance

1. PCI Compliance: Ensure that your payment processing system is PCI compliant to protect against fraud and reduce chargebacks.
2. Regular Updates: Keep your QuickBooks software and payment gateway updated to benefit from the latest security features and improvements.

Contact Paygration for QuickBooks Merchant Services

If you are ready to take advantage of the benefits offered by QuickBooks Merchant Services, Paygration is here to help. Paygration provides expert setup, free consultations, and ongoing support to ensure you get the most out of your QuickBooks payment processing solutions. To get started, contact us at 866-949-7267.