When does a merchant receive the funds after settlement?
A merchant receives funds when its acquirer, PSP or PayFac pays out, usually one to three business days after capture, written T+1 to T+3. Settlement from issuer to acquirer often takes one or two days, then the provider applies its own funding schedule, fees and any reserve. New or riskier merchants may wait longer. Details in settlement and payout.
In detail
The time between a sale and the money in the merchant’s bank account depends on three steps: capture, settlement and funding.
The usual timeline
- Capture and batch: the transaction is captured and sent at the daily cut-off.
- Settlement: the issuer pays the acquirer, minus interchange, typically one or two business days later.
- Funding: the acquirer, PSP or PayFac pays the merchant on its own schedule, written T+N, where N counts business days after capture.
What can delay funds
- Reserves: a share of each payout held to cover future refunds and chargebacks.
- Payout schedules: weekly or monthly payouts for small merchants.
- Weekends and holidays: settlement runs on business days.
- Risk reviews: unusual volume can pause payouts.
A PayFac controls the last step, so it can offer faster or even same-day funding if its cash position allows. Merchants should find the funding schedule, fees and reserve rules in their contract and on each payout statement. Read settlement and payout and Authorization vs Capture.