What’s in My Deposit?
Clearent gives you two options for paying your transaction fees:
- Daily Settlement (Daily Net Settlement): We can deduct processing fees from your daily transaction activity, in which case you will see the net amount deposited in your bank account. This is a popular option because it keeps your payment processing on a “pay-as-you-go” model and reduces the amount you will owe at month-end. Other fees (such as authorization fees, monthly fees, and equipment charges) will be withdrawn from your bank account a few days after the end of the month.
- Gross Settlement (Month-End Billing Option): You can choose to be paid for your transactions daily, but wait until month-end to pay transaction fees, in which case your daily deposit will be the gross amount (sales minus any credits) of your transactions. At month-end your processing fees (plus normal month-end items such as authorization fees, monthly fees, and equipment charges) will be withdrawn from your bank account a few days after the end of the month.
Split Funding
Clearent partners with merchant funding providers who can help you finance critical business needs based on your daily processing activity. The details of funding arrangements vary, and so do the particulars of repayment. For example, after you’ve received an advance, you may setup a direct ACH arrangement where the funding provider is allowed to debit your bank account on a daily basis for repayment. Or you may choose to pay them back with a portion of your daily credit card processing. This is sometimes known as Merchant Cash Advance with Split Funding.
If you’ve setup a Split Funding arrangement, we will deduct a designated percentage of your daily deposit (usually no more than 30%, and often less) and pay it to your merchant funding provider. Once you’ve repaid the funding advance, your funding provider will contact us and we will turn off split funding.
Split Settlement (Multiple Bank Accounts)
In certain cases, our customers want us to make deposits to one bank account, but need their fees withdrawn from a different account. You can designate up to three different bank accounts, each with a different purpose. The different kinds of activity are:
- Deposits (Transactions)
- Fees (Daily and Monthly)
- Chargebacks (and other Settlement Adjustments)
You can also designate one account for all three, or one account for two kinds of activity and one account for the other. For example: one bank account may be designated for Deposits, while a second bank account is designated for Fees and Chargebacks (this is sometimes necessary for certain government agencies, law firms, accountants and accounting services, or charitable trusts that have restrictions on whether certain bank accounts can be debited by outside parties).