Net Funding

A merchant configured for net funding will receive their funds for each deposit with the processing fees deducted in advance. This results in a single deposit in the merchant’s bank account, consisting of all transactions for a given batch date, with all associated processing fees removed prior to deposit.

Net Funding Example

Suppose a merchant takes three (3) payments totaling $500 on a given date, and the cost of processing each is 2.90% + $0.30. In this case, the total fees for the transactions would be determined as such:

$500 x .029 = $14.50 (flat rate fee)
3 x $0.30 = $0.90 (per transaction fee)
$14.50 + $0.90 = $15.40 (total cost of processing these transactions)

For the associated deposit, the merchant will be funded the total transaction amount, less the total cost of processing:

$500 - $15.40 = $484.60 (final deposit amount in the merchant’s bank account)

Due to the nature of this funding method, it is only compatible with daily fee discounting. Any merchant configured for net deposits must be configured for daily fee discounting as well.