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Pay periods end at 12 A.M. Pacific time on Wednesday, or every other Wednesday for two-week payments. Payments are sent on the Wednesday two weeks after the end of a pay period. Thus, it may take a couple of weeks to receive your first payment, but direct deposits will usually come weekly after that. Their minimum payout is $10.
Square – For payments taken during business hours, they are usually available in your bank account the next business day.
Intuit GoPayment – Money is deposited into your bank account daily at 3 P.M. Pacific.
Keep in mind that most processors have payment limits, minimum payouts, etc. For example, you might have to wait until you’ve accrued at least $100 in funds before you’ll be paid.
Or you might only be paid up to a certain amount of the money you receive, while the rest is held in reserve for a certain length of time in case of refunds or fraud.
Your location is another factor to consider. If you’re in the United States, you probably won’t have to worry so much about this. But if you’re in another country, you may find some payment processors restrict you from being able to use their systems.
The primary reason for this is a high prevalence of fraud in certain countries. However, there are other reasons some processors cannot or will not process transactions in certain countries.
Factors can include:
Currency exchange rates
Banking regulations in that country
The current social or political environment in that country
If you are having trouble finding a payment processor that will allow merchants for your country, you may have to consider using a high-risk provider or perhaps partnering with someone who lives in a country that will allow them to get a merchant account and splitting the profits with them.
Because you may be subject to changes in terms and conditions, it is always best to have at least one backup processor in reserve. Don’t wait until you’ve been banned from one to find another, because you could lose an unbelievable amount of money in the process!
Here’s what you need to do to secure a backup processor:
1. Review the processor just as you would any other processor. View the terms and conditions, fees, payment terms, etc.
2. Apply for the processor and get accepted.
3. Test the processor thoroughly with your current system to be sure the switch could be seamless in the event it becomes necessary.
4. Send some sales through their system so you can start any “timers” that might be in place to get paid.
Ideally, you will want to have at least two backup processors in place in case one of them isn’t working, closes, or changes their terms by the time you need them.
Another good reason to have a backup processor is in case your payment processor goes down during a major launch or shopping day. Imagine releasing a new product and having your payment processor go down for a day or two! You could lose thousands of dollars, upset affiliates, and even potentially ruin your reputation, because affiliates and customers will expect you to be prepared for such an event!
If you’re looking for a payment processor, you need to be sure you review all of the various available processors and take a look at which type is best for you. Look at their terms and conditions, compare them to your business model, and choose one that fits well with your current structure.
If you’ve been using the same payment processor for a long time, you might want to consider changing processors if you find one with better terms. Remember that not all payment processors are created equal. Some have better fees, some have better features, and some have better service.
Just don’t take the selection process lightly. Remember, if you end up doing a very high volume of transactions, a difference of just 1% in fees could make a huge difference to your bottom line. This is especially true if you’re running on low profit margins already.
Hopefully you’re now equipped with the information you need to choose the right payment processor for your business!