Who Decides if Your Bank Account is Funded?

Remedy Payments collaborates with a partner bank (funding bank) that agrees to provide funds to you immediately on behalf of the bank that issued your customer’s credit card. For example, if your customer uses a Wells Fargo Visa to make a $10,000 purchase, our funding bank promptly deposits $10,000 into your Merchant Account overnight and subsequently seeks reimbursement from Wells Fargo.

The Role of Funding Banks:

Funding banks play a critical role in processing your transactions and assume a substantial amount of risk. They are responsible for underwriting new merchant processing accounts and manage the risk associated with every transaction they process. If your customer disputes a transaction and your business bank account lacks sufficient funds to cover the transaction, the funding bank is responsible for providing the necessary funds to your customer. Underwriting a new merchant processing account involves taking on a considerable degree of risk.

The Impact of Transaction Volume:

Your merchant processing application contains vital information about your business, including your expected annual credit card volume, the average individual transaction amount, and the highest individual transaction amount. These figures are not arbitrary; they significantly influence the underwriting process conducted by the funding bank when deciding whether to approve a new merchant account.

This is important to note because Remedy Payments has no control over risk holds or funding delays except to serve as your advocate based on our understanding of you, your business, and our history of doing business together with you.

Adapt and Communicate for Smooth Processing:

As a business owner, it’s imperative to understand the volume figures associated with your merchant processing account. To prevent funding delays and “risk holds,” it’s crucial to keep your payment processor, such as Remedy Payments, informed as your business evolves and grows. Any significant deviations from the provided figures can lead to issues such as funding delays and “risk holds.” 

What Happens in Case of Deviation:

If your business deviates from the volume figures provided to the bank, your account may be placed on a “risk hold.” This can result in funding delays and necessitate a thorough “risk review” of your merchant processing account. If you anticipate processing a transaction exceeding the limits set on your merchant account, please notify your payment processor immediately to facilitate communication with the funding bank, expediting the review process and accelerating the release of your funds to your bank account.

Account reviews typically involve the following and will likely be required to conduct and remove the “risk review” from your merchant processing account.

  • Bank Statements: The funding bank may request three months of recent bank statements to ensure that your account balances support the increased transactional volumes.
  • Invoices: Invoices or contracts for recent large purchases may be requested, and the funding bank might reach out to cardholders to confirm their intent not to dispute the transactions.
  • Questions: Expect additional inquiries about the delivery schedule of your products/services.
  • Online Reviews: Your most recent online reviews may be scrutinized to gauge customer sentiment. Negative reviews can hinder the removal of a “risk hold.”
  • Business Tax Returns: The funding bank might request one to two years of recent tax returns to assess your business’s financial health.
  • YTD Balance Sheet & Profit Loss Statement: A year-to-date balance sheet and profit loss statement may be required to validate your business’s financial health.

At Remedy Payments, we are committed to working closely with your business during these situations. We will present your case to the funding bank, advocating on your behalf to ensure fair treatment. Our goal is to help you maintain a positive standing with your merchant account, allowing you to focus on your business operations.

In the hustle and bustle, it’s essential for moving companies to be prepared for larger transactions and understand the intricacies of the funding process. By staying in close communication with your payment processor and being proactive about any changes in your business, you can ensure that your bank account remains funded efficiently and without delays. Remedy Payments is here to support you throughout this process and ensure a smooth experience for your moving company.

Remedy is powered by Chosen Payments whom is a registered ISO and FSP of Wells Fargo Bank, N.A., Concord, CA and BBVA USA, Birmingham, AL., and Elavon, Inc., N.A., Atlanta, Georgia, and Evolve Bank & Trust; Memphis, TN., and Merrick Bank, N.A., Draper, UT.