Funds and Funding

What are the minimum number of days to fund a sub-merchant?

Since Dynamic Payout uses the ACH network, normal funding takes place one business day after you submit the funding instruction. The example below shows the minimum timing.

If you code to use Same Day Funding (V11.1 and above) and the Funding Instruction submission meets the requirements, the settlement to the sub-merchant in the example below occurs on Business Day 2.

Example: Minimum Time to Fund (must close batch by 10:00 ET)

• Business Day 1: Process $100 Visa transaction.

• Business Day 2: $100 clears to Settlement account and Funding Instruction submitted.

• Business Day 3: sub-merchant funds settled into their account.

 

Do you offer same day funding and if so, what are the requirements?

Yes. We make same day funding subject to the following restrictions:

• You must submit the Batch file prior to 11:00 AM ET, allowing adequate time for the processing of the transactions (i.e., It is unlikely a batch of 100,000 Same Day funding instructions submitted at 10:59 AM would make the cut-off.)

• The batch should include only transactions for less than $100,000 (single transaction limit).

• The batch cannot contain multiple transaction to the same account exceeding $100,000 total.

If you include a transaction over $100,000, or multiple transaction to the same account exceeding $100,000 total, we mark the transactions as same day, but processing takes place next day. Because you included them in the batch, we assess fees for same day funding. To avoid excess fees, do not include these transactions in a same day funded batch.

• The total disbursement to any sub-merchant cannot exceed $100,000 in a single day.

• We only process same day funding batch files on non-holiday weekdays (i.e., no weekends or holidays).

• Batches submitted outside the allowed window are processed as next day funding instructions.

• You must set the sameDayFunding attribute (of the batchRequest) to true

 

When should I worry about prefunding the FBO Settlement account?

The timing and need to prefund the Settlement account is a judgment call. In many cases, the only time you should need to prefund the Settlement account is when you begin processing transactions and submitting funding instructions. At that time, there is a possibility of you issuing instructions to fund your sub-merchants, or vendors prior to having the necessary funds available to cover the instructions. To mitigate this possibility, you will most likely want to move adequate funds from your Operating account to the Settlement account. Once the settlements have caught up to the payments, you can move the original funds back to your Operating account, to your Reserve account, as a contingency for future needs, or a split between the two accounts. (Also, see next question/answer.)

 

If I float funds so I can fund my sub-merchant on the next day, can you explain the timing of funding with respect to the activity day?

In this scenario, you sent instructions to fund your sub-merchant on the same day as the activity (i.e., day transaction processed). Keep in mind, your sub-merchant must have a cut-off time early enough for you to submit the instruction prior to the 7:00 PM ET cut-off for funding instructions. The table below shows the timing of the funding day with respect to the activity day.

Sub-merchant Activity Day	Sub-merchant Funded Day
Saturday, Sunday	Monday
Monday	Tuesday
Tuesday	Wednesday
Wednesday	Thursday
Thursday	Friday
Friday	Saturday

Depending upon the Issuing Bank used by the sub-merchant, on the Funded day, the sub-merchant's bank account will either be memo posted and/or have funds available.

If I do not float funds, can you explain the timing of funding with respect to the activity day?

In this scenario, you sent instructions to fund your sub-merchant on the day following the activity (before cut-off time). The table below shows the timing of the settlement to your Settlement account and the sub-merchant funding day with respect to the activity day.

Sub-merchant Activity Day	Funds to FBO Settlement Account	Sub-merchant Funded Day
Friday, Saturday, and Sunday,	Monday or Tuesday (depending upon your configuration; consult your PAM for additional information)	Tuesday
Monday	Tuesday	Wednesday
Tuesday	Wednesday	Thursday
Wednesday	Thursday	Friday
Thursday	Friday	Saturday

 

How do I find out the current available balance of my Settlement account?

We produce an Account Balance Report every hour between 1:00 PM ET and 9:00 PM ET. You can access this report in the Secured Scheduled Reports (SSR) folder of your Worldpay sFTP site. This report provides your PayFac Settlement balance, Reserve balance and AmEx Sweep balance, if applicable. Please refer to the Worldpay eComm Secured Scheduled Report Reference Guide for additional information about the report. Please keep in mind that the Account Balance Report does not reflect pending funding instructions that you have successfully submitted, but have not been delivered to the ACH Network for processing.

The first table below shows the timing of money movement to the PayFac FBO Settlement account with respect to the activity day. The second table shows the timing of Funding Instruction delivery (normal funding, not same day).

Transaction Type	Activity Day	Available in FBO Settlement Account
Mastercard, Visa, Discover, AmEx	Monday	Tuesday ~1PM ET
	Tuesday	Wednesday ~1PM ET
	Wednesday	Thursday ~1PM ET
	Thursday	Friday ~1PM ET
	Friday, Saturday, and Sunday	Monday ~1PM ET
Direct Debit	Monday	Tuesday ~1PM ET
	Tuesday	Wednesday ~1PM ET
	Wednesday	Thursday ~1PM ET
	Thursday	Friday ~1PM ET
	Friday	Mon. ~1PM ET
	Saturday and Sunday	Tuesday ~1PM ET

Funding Instructions	Submitted	Delivered for Funding
All	Monday	Tuesday
All	Tuesday	Wednesday
All	Wednesday	Thursday
All	Thursday	Friday
All	Friday	Monday
All	Saturday and Sunday	Monday

You can also view your account balances through iQ. The data in the Account Summary report changes frequently due to the receipt of the various transaction data files throughout the day. The Account Summary report provides information to assist you with the reconciliation of your Dynamic Payout accounts (FBO Settlement, Reserve, Check Payment, and American Express), as well as your PayFac Operating account. The Account Summary report includes account balances and detailed information on the instructions and activities for each account type, however it does not account for pending funding instruction requests (i.e., funding instructions successfully submitted to Worldpay, but not yet delivered to the ACH Network). Because the report does not account for pending instructions, to determine the balance including pending instructions, subtract any funding instruction requests that you have successfully submitted since the prior business day's 7:00 PM ET cut-off and prior to the current business day's 7:00 PM cut-off from the amount displayed in iQ. Please refer to the iQ eCommerce Reporting and Analytics User Guide for additional information.

 

When I submit funding instructions for my Reserve account, what is the timing of money movement and availability of funds in the account?

The table below shows the timing of money movement to the Reserve account with respect to funding instruction day.

Transaction Type	Activity Day	Available Day	Bank Settlement Day
Funding Instructions (FIRC/FIRD)	Mon. - Thurs.	Same Day	Next Day
	Fri.	Same Day	Mon.
	Sat. - Sun.	Same Day	Tues.

Keep in mind the balance shown in the report represents the balance from the previous day +/- any pending activities (through funding instructions) and that the funding instructions are accounted for only after their delivery.

 

What happens if the available balance of my Settlement account is insufficient to cover the funding instructions?

Worldpay performs a front-end check on each Funding Instruction within a Batch, as well as Online instructions, verifying sufficient account balances to cover the money movement from each account. If system detects insufficient funds in any account impacted by the a funding instruction, Worldpay rejects the individual Online instruction or any individual instruction from the Batch that would result in a negative balance. The returned error message provides information about the account lacking funds.

To avoid possible account balance verification issues, Worldpay recommends you submit debit transactions first, in a separate Session file from the credit transactions.

Also, keep in mind that the system may not handle transactions within a Batch sequentially. This is likewise true for Batches within a Session, but we do handle Session files in the order sent. To guarantee sequential handling of Batch files, you must submit the Batch individually in Session files.

For example, your Reserve Account has a starting balance of $100,000. You introduce a Batch of funding instructions that include a reserveCredit transaction for $100,000 and four reserveDebit transactions as follows:

Reserve Debit 1 - $30,000

Reserve Debit 2 - $50,000

Reserve Debit 3 - $20,000

Reserve Debit 4 - $100,000

The following scenarios (and others) are all possible:

Scenario 1

1. The system processes the reserveCredit transaction first, bringing the available balance to $200,000.
2. All debit transactions in any order succeed.

Scenario 2

1. The system processes the four reserveDebit transactions in sequence.

2. The system approves the first three, reducing the available balance to $0.

3. The system declines the fourth transaction for insufficient balance.

4. The system processes the reserveCredit transaction, bring the available balance to $100,000.

Scenario 3

1. The system processes the fourth reserveDebit transaction, reducing the balance to $0.

2. The system declines the first and third transactions for insufficient balance.

3. The system processes the reserveCredit transaction, bring the balance to $100,000.

4. The system processes the second reserveDebit transaction, reducing the balance to $50,000.

How do you calculate my available balance when executing funding instructions?

When you submit a set of funding instructions, we calculate your available balance as PayFac Settlement Account current balance + Reserve Debits (from funding instructions). The total funding instruction credits must be less than your calculated available balance for us to execute the submitted instructions. Please refer to the examples below.

Example: Instruction Batch that Passes Front-End Checks

• Current balance of Settlement Account = $300

• Current balance of Reserve Account = $300

• PayFac Credits (FIPC) = $100

• sub-merchant Credits (FISC) = $300

• sub-merchant Debits (FISD) = $300

• Reserve Debits (FIRD) = $200

Calculation: $100 (FIPC) + $300 (FISC) = $400 total credits

$300 (Current Balance) + $200 (FIRD) = $500 available balance

$400 total credits <= $500 available balance

Example: Instruction Batch that Fails Front-End Checks

• Current balance of Settlement Account = $300

• Current balance of Reserve Account = $300

• PayFac Credits (FIPC) = $100

• sub-merchant Credits (FISC) = $300

• sub-merchant Debits (FISD) = $300

Calculation: $100 (FIPC) + $300 (FISC) = $400 total credits

$300 (Current Balance) = $300 available balance

$400 total credits > $300 available balance