Understanding Minor Delays in Large Payment Processing

For businesses and merchants who regularly run credit card transactions, there’s nothing better than receiving deposited funds from a credit card processor. This process generally takes two to three days for most standard merchant accounts, at least when talking about normal, run-of-the-mill charges.

At Merchant Card Advisors, we’re proud to offer a variety of payment processing solutions for businesses and merchants everywhere, including high-risk card services for those who require it. One exception to the above timetable for receiving funds in your merchant account is when you have an abnormally high payment that’s being processed – today’s blog will look into why this process might be delayed and what you can do to help it along.

Normal Payments Vs. Large Payments

When we speak about a large payment from a transaction, we’re generally referring to a payment that’s large relative to the size of your normal transactions. If your company typically handles transactions in the $25 to $300 range, for instance, but you suddenly run an $8,000 charge one day, you can generally expect there will be at least a moderate delay in processing this one-time large payment.

It’s important to understand that this is a simple reality for virtually all processors. Even if you have next-day funding set up, there’s a good chance it will be delayed in these cases.

Fraud Prevention

The primary reason for this delay? Fraud prevention, which we’re sure you’ll agree is worth the slight wait on receiving your funds. Unusually large transactions aren’t always fraud, of course, but they might be, and we want to take the proper steps to ensure this isn’t the case before moving forward.

This protects not only you and your business, but also your processor. They do not want to suffer a major fraud loss either, so they’ll wait until the funding bank validates the transaction and confirms there was no fraud.

Processor and Bank Communication

On the practical side, the reason this takes as long as it does is the need for the processor to hear back from the cardholder’s bank. There’s no set amount of time for how long this will take – it depends on the bank and several other factors. There are situations where you’ll simply have to be patient, unfortunately.

Taking Extra Care

Anytime you’re taking a payment you know is much larger than your usual range, you’ll do well to take a cautious approach yourself. Ask for identification and ensure the names match on the ID and the card being used, plus check the billing address. Ensure you follow proper security steps for taking a payment over the phone or online. These basic steps will both protect you and potentially expedite the processing period just a bit.

For more on why large-value transactions may take a bit of extra time to show up in your merchant account, or to learn about any of our credit card processing services, speak to the staff at Merchant Card Advisors today.

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