Fast Payment Clearing and Settlement Process

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Libby James
Merchant Services Expert

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

Credit card merchant settlement process

When accepting face-to-face payments the merchant settlement period is the length of time between processing the payment and the funds clearing in your business bank account. This varies from provider to provider with some offering same day merchant processing to others taking up to seven days. If the credit card merchant settlement process timings are important to you, make sure you ask the question prior to applying for an account.

How does payment settlement work

When processing payments there are often three different banks involved in the transaction, put simply the customers bank, your business bank and the merchant acquirer who sits in the middle and makes the settlement.

Although technology is smart, quite likely communicating between all three banks (especially when some transactions take place outside of bank opening times) can take a few days. The money will be processed firstly through authorisation from the customers bank, which happens when they enter their pin code at checkout, you’ll often see this on the chip and pin machine  screen. Once these funds have cleared with the acquiring bank they can then be settled into your business account.

As with everything in merchant service the settlement period varies from provider to provider, just the same as rates, fees and contract lengths.

Merchant services with next day funding

There are numerous businesses where next day funding can have a substantial benefit to daily operational costs. For instance, some companies choose to use ‘batch processing’ where they process all payments at the end of day meaning the settlement for these bulk payments can amount to a large chunk of revenue. Waiting days for these payments to clear can mean that businesses are unable to purchase extra stock or pay overheads until settlement is received, which can be the following week.


Some merchant account providers will guaranteenext day deposit, meaning that the funds are paid into your business account the following business day, often streamlining operational costs. Next day funding merchant accounts can be extremely beneficial to companies dealing in car sales and high ticket items. Often these types of businesses accept fewer transactions at larger amounts so every penny counts.

We work closely with banks and brokers who have access to next day merchant funding accounts. If this is a priority to you and your business speak to our experts and we will point you in the right direction, first time around.


How Merchant Advice Service can help

Merchant Advice Service works with brokers and bank based in the UK and Europe to provide the most up to date industry knowledge, helping you the merchant to make informed choices of who you wish to use for your credit card processing. Our aim is to provide straight talking, plain English advice in a world where industry terminology can be confusing and fee structures unclear. We have industry experts that can advise in the following areas;

  • Next day funding
  • 24 hour funding
  • Same day funding

Same day merchant services providers

In some industries next day pay out merchant accounts just aren’t quick enough. For example, hospitality businesses often take payments late at night well after the banks have closed and therefore fall into the next working day. Using a standard merchant account could mean that the payments aren’t settled for over a week.

Equally using next day funding merchant services, due to transaction timings could mean payments are settled in a few days rather than the next day. Some merchant account providers offer same day settlement for Visa and Mastercard payments, however these providers often require you to have business banking with them too, to which the funds are then settled.

Same day settlement payment gateway and merchant account

The payment gateway settlement process takes a little longer than face-to-face transactions, this is because often there is another party involved in the exchanging of funds. Although same day and next day settlements are often unheard of, we work closely with payment gateway providers who can offer quick settlement times. Speak to our experts to find out more.


High-risk merchant processing next day funding

When it comes to high-risk merchant accounts, providers like to hold onto funds for a longer than standard transactions, this is to counterbalance the risk of fraud or chargebacks. In industries that experience high levels of risk,  next day merchant services are often unavailable. Speak with our advisors about the quickest and safest ways for you to receive settlements.

Enquire today about next day and same day funding merchant services

Our UK based team of friendly experts are happy to help with your enquiry. Working closely with banks and brokers who provide sameand next day settlement on Visa and Mastercard transactions here in the UK and Europe.

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Libby James

Libby James Co-founded Merchant Advice Service alongside David Bird in 2016. Her finance background, coupled with retail and customer service experience, gave Libby the drive to bring transparency and non-biased advice to the world of merchant services. Having come from the heavily regulated mortgage and insurance industry, Libby found it puzzling that other financial sectors lacked regulation and transparency leaving customers confused and unable to make informed decisions when it came to accepting card payments. This was soon to become Libby’s obsession!

With the help of some of the industry’s best, Libby began to research acquiring banks, complex terminology/regulation, and the problems customers experience within merchant services and payment gateway markets. She spent years on sourcing solutions for complex clients, which previously others were unable to assist with. Libby established relationships with brokers and banks which would soon form the cornerstone of Merchant Advice Service. As a result Libby has been featured in high-profile publications across the web.

Libby is proud to be the entrepreneur’s champion, supporting start-up businesses regularly. Her industry insights can often be found on LinkedIn where she provides free of charge advice and money saving pointers. It’s safe to say she has her finger on the pulse of everything card payments related.

Libby speaks of her experience in founding and running Merchant Advice Service…

‘Merchant Advice Service is one of my greatest achievements to date. We help business owners to overcome card processing issues which can become detrimental to their business. We assist SME’s in finding suitable card payments solutions, helping them create their vision. Each and every day is different, exciting and fore filling. As technology advances I can’t wait to see the way in which the merchant services market advances, and I’m pleased that our business will play a part in educating company owners along the way.’

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