PaymentTech - Payment delays as long as 7 days

Any alternatives? - How fast do you get your deposits?

[Arctrust]

Hey Guys:

We use PaymentTech now for about 5 years.... on average we see deposits to our bank checking account as old as 7 days and this is daily. We never receive a cleared transaction any sooner than 7 days.

Does anyone have any suggestions or alternatives?

Thanks!
ARC

[justgowithit]

Are you aware of any ACH delays that may have been placed on your account when it was first established?

[Arctrust]

Hello:

Thank you for your thoughts.... NO.

I am not aware of any ACH delays... Never even thought of that as an option.

Is this common practice among CC Processors?

ARC

[justgowithit]

In order to mitigate risk many Internet or other high-risk accounts will be set up under certain conditions. One of these conditions is an ACH-delay which extends the time it takes for deposits to be made to the merchant bank (your account).

ACH delays have an expiration date where they are dropped from the account and the normal ACH cycle goes into effect. Of course, I've seen many circumstances where the ACH delay stays in place for months or years after it has expired and is not removed until the merchant specifically request that it be.

It's not something that the provider does on purpose.... It's just one of those things. Give PaymentTech a call and inquire as to if there are any delays on your account.

If not, let them know about your concern about deposit delays and see what can be done. Although 7-days is a little long for deposits keep in mind that almost all card-not-present accounts will carry a longer depository time.

[Arctrust]

justgowithit

Thank you for your time and detailed explanation. It's certainly helpful and a starting point.

Again...Thank you!
ARC

[Arctrust]

WOW!

I called Paymentech and they told me that the credit is actually going the next day.... but gets held up in an RPP account for 5 days and released on 6th day because that is the way the account was originally coded.

The RPP account is to mitigate fraud.

Thank you!

ARC

[justgowithit]

Awesome!

Huh, I've never heard of a 100% reserve account for such a short period of time. Reserve accounts are usually a small percentage of total sales held over a longer period of time.

I bet you had an ACH delay attached to the account and the rep just mixed it up.

Either way, I'm glad I could help. Best of Luck!

[Corey Bryant]

Usually you should get your funds about two days after the batch. I have heard of some merchants with Paymentech having to wait 5 business days for their funds. This seemed to be the case for some users when they switch to MS Small Business Accounting

-Corey