What are Delayed Settlements?
What Are Delayed Settlements?
A delayed settlement occurs when the funds from a transaction are not transferred to your account as quickly as expected. This means there is a delay between when the transaction is approved (authorized) and when the payment is deposited into your business account.
Please note - even with delayed settlements -- fees will continue to be debited.
Why Do Settlements Get Delayed?
Several factors can cause delayed settlements, including:
Processing Time: Payments can take time to be processed through the banking system, especially if they occur during non-business hours, weekends, or holidays.
Review or Verification: If a transaction is flagged for further review (e.g., for fraud prevention or compliance checks), it may delay the settlement process until it’s fully cleared.
Batch Processing: Fractal's batch cut off time is 8pm EST. If your transaction falls outside of the scheduled batch processing, it may take longer to settle.
Merchant Account Issues: If there’s an issue with your merchant account, such as discrepancies in your account details or requirements for additional verification, settlements might be delayed until those issues are resolved.
Payment Gateway or Processor Delays: Technical or operational issues with the payment gateway or processor could also result in delays.
Banking Policies: Different banks have their own processing timelines. Some might have longer settlement windows, which can affect how quickly funds are available to you.
How Will Delayed Settlements Impact You?
Temporary Delay in Cash Flow: You might experience a slight delay in receiving your funds, but typically, the transaction will still settle without any issues.
Extended Wait Time: In some cases, it might take an additional business day (or more) for funds to be deposited into your account.
Transparency: You will typically be notified when a settlement delay occurs, and you should be able to track the status of your payments in real time via your merchant dashboard or payment processor.
What Should You Do?
Monitor Your Transactions: Keep track of your transactions in your payment system to ensure the settlement delay is not affecting a large volume of payments.
Be Patient: Delayed settlements are usually temporary. If the funds are still pending, they should eventually clear.
Contact Support if Needed: If a settlement delay extends longer than usual, or if you have questions about a specific transaction, you can contact us for further clarification and updates.
When Can You Expect Your Funds?
Typically, delayed settlements will be resolved within 1-2 business days. However, this can vary depending on the cause of the delay. As long as the delay isn’t due to an error, your funds will usually be deposited within the next business day or following the next processing window.