Funding Times: How quickly will I receive my funds?

For this month’s support tip, we’ll discuss a hot topic: Funding times. Everyone always wants to know, “Where’s my money?” and we want to make sure you fully understand how the funding process works. Most Dharma merchants are paid every two business days. This means that after Dharma receives your transactions, your bank account will be funded for the full gross amount of those transactions. For example, if you accept five sales on Monday for a total of $600, you could expect to see the full $600 amount deposited to your checking account by Wednesday, which is two business days later. Transactions that process on Thursday will post to your checking account on Monday, and transactions that are submitted from Friday to Sunday will post to your account on Tuesday.

There are many different scenarios that can alter your funding schedule, though. It’s important to be aware so that you’re not surprised if your account is subject to one of the following situations:

• Some merchants are granted next-day Typically, Dharma can offer this to card-present merchants who haven’t had any chargeback or risk issues in the past. If you’re granted next-day funding, you’ll actually see deposits to your bank account a day earlier, or the following business day.
• In order for Dharma to process your funding within two business days, you’re required to submit your transactions to us prior to the network cut off time. The cut off timing can vary depending on your equipment/network setup, but the vast majority of our merchants will need to batch/settle/close-out by 7pm Eastern Standard Time in order to ensure two-business day funding. If you have to batch-out after 7pm, that’s fine. Many businesses prefer to simply delay their funding by a day, and purposely “batch-out” after the cutoff time, because their business stays open late. This choice is yours.
• Since we always deposit gross sales amounts into your bank account, we’ll be summing up all the fees owed to Dharma in the background, throughout the month. During the first week of every month, we automatically remove our fees. Fees will be taken from the same account into which we deposit our funds. If you are being funded for transactions on the same day we are removing our fees, you’ll see a net deposit for your batch amount, minus the fees you paid. If you had no deposits during the day we remove our fees, you’ll instead see a debit from your accountfor our full fee amount.
• If you receive a chargeback,these fees will be automatically removed from your next day’s deposits. Chargebacks are infrequent, but are very important to keep an eye on. When your customer disputes a transaction and issues a chargeback, per Visa/MC guidelines, the funds are immediately removed from your bank account, until the chargeback is resolved. Should you follow-up and win the chargeback, the fees will be re-deposited into your account. You’ll always receive a chargeback notification in the mail and it’s imperative you follow the instructions closely to properly defend yourself and recoup any lost funds. Failure to respond to a chargeback will result in lost funds, regardless of the actual circumstance of the chargeback.