The short answer
Settlement timing is a working capital decision. Moving from three-day to next-day funding on $60,000 monthly volume frees roughly $4,000 of permanently trapped cash. Reserves, refund lag and chargeback timing all pull in the same direction.
Model the float
Daily volume multiplied by days of delay equals cash permanently sitting with your processor. Most merchants have never calculated this figure, and it is usually larger than they expect.
Refunds are worse than they look
Refunds leave your account immediately and reach the cardholder days later, and the original processing fees usually stay gone. High-refund businesses should model this separately.
Key takeaways
- Funding delay is trapped working capital — quantify it
- Refund fees are usually not returned
- Reserves compound the effect on growing businesses
Want this checked against your own statement?
We are an independent agent — we shop every processor we work with and bring you the best deal for your profile. Free analysis, every fee named, back within 4 hours. Or call now and we will quote you on the phone.