Mobile Credit Card Systems: How Quickly Do I Get Paid?

You’ve heard it before: Mobile payments are a revolutionary way to conduct business from any location. A mobile card reader lets you use your smartphone or tablet computer to accept credit cards, making transactions more convenient than ever for you and your customers.

As a savvy small-business owner, you’re probably thinking, “That’s great. But when do I get my money?” The short answer: One to five days.

Batch Processing

Here’s how the mobile-payment process works: When you swipe a customer’s credit card through your card reader, the transaction amount is checked against the card holder’s account in real time to make sure that there is enough credit available. All approved transactions are sent to Intuit for processing. This happens once a day, in a grouping called a batch. Each batch consists of all transactions made before 6 p.m. Eastern that day, plus any that came in after the cutoff the prior day.

At 6 p.m., the batch of transactions is transmitted to Intuit’s Merchant Services Center. The batch is sorted into individual merchant accounts, and the total amount of money you accrued via GoPayment that day is submitted to your bank, after which the bank releases the funds to your account. The time between the bank’s notification and the moment it releases funds for your use is known as the time to funding.

Time to Funding

The precise time to funding largely depends on the policies of your bank or financial institution. Banks vary as to when they verify fund transfers and deposit the money into your account.

Generally, this takes only one or two business days, though the process can take up to five days in certain instances. During the time to funding, credit card payments are shown as Pending in your business account. This status changes to Funded when the bank tells Intuit that the funds have cleared.

Bottom line: It generally doesn’t take you long to get your money after you accept a mobile payment, and the waiting period is usually much shorter than sending an invoice to a customer and then waiting for a check to arrive in the mail.

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