What is a Card Payment?

Card payments are electronic transactions where customers use credit cards, debit cards, or prepaid cards to pay for goods and services. These payments are processed through card networks (Visa, Mastercard, American Express, Discover) and involve multiple parties working together to authorize, capture, and settle funds. At this time, JustiFi only accepts card payments from a U.S. based bank.

Common Card Payment Types:

• Credit card payments (Visa, Mastercard, American Express, Discover)
• Debit card payments (PIN and signature-based)
• Contactless payments (tap-to-pay via card terminal device)

How Card Payments Work

Card payments go through a real-time authorization process followed by settlement:

Authorization (Happens in seconds)

1. Transaction initiation: Customer presents card for payment
2. Authorization request: Payment details sent to card network
3. Bank approval: Issuing bank approves or declines transaction
4. Response: Merchant receives approval or decline message
5. Receipt: Transaction completed at point of sale

Settlement (Happens later)

1. Batch processing: Transactions are batched for settlement
2. Clearing: Card networks process batched transactions
3. Fund transfer: Money moves from customer's bank to your account
4. Deposit: Funds appear in your merchant account

Card Payment Settlement Timeframes

Standard Settlement Schedule

Business Days Required: 1-2 business days
 

Typical Timeline Examples

Monday Transaction:

• Authorization: Immediate (seconds)
• Payout Created: Tuesday (next business day, if submitted before cutoff time of 1:30 am CT)

Friday Transaction:

• Authorization: Immediate (seconds)
• Payout Created: Monday (next business day, if submitted before cutoff time of 1:30 am CT)

Weekend Transaction:

• Authorization: Immediate (seconds)
• Payout Created: Monday (next business day, if submitted before cutoff time of 1:30 am CT)

Factors That Can Affect Settlement Times

Transaction-Related Factors

• Card type: Premium cards may take slightly longer
• Disputed transactions: Chargebacks can reverse settled funds
• Weekend processing: Limited settlement processing on weekends

External Factors

• Bank holidays: Can delay settlement by one business day
• Network issues: Rare technical problems may cause delays

Authorization vs. Settlement

Authorization ≠ Payment: Approved transactions can still fail during settlement

Authorization (Immediate):

• Confirms card is valid and has available funds
• Places hold on customer's account
• Provides approval code for transaction
• Does NOT transfer money to your account

Settlement (1-2 business days later):

• Actually transfers money from customer to merchant
• Converts authorization into final payment
• Releases hold on customer's account
• Deposits funds into your merchant account

Best Practices for Merchants

Manage Cash Flow

• Predictable timing: Most settlements occur on consistent schedule
• Plan for weekends: Friday transactions settle Monday
• Account for holidays: Settlement will be delayed by bank holidays

Reduce Settlement Issues

• Process transactions promptly after authorization
• Avoid excessive authorization holds
• Maintain updated cardholder account information
• Monitor for and address chargebacks quickly

Frequently Asked Questions

Q: Why do I see the authorization immediately but not get paid until later? 
A: Authorization confirms the transaction is valid, but settlement is when money actually moves between banks, which requires additional processing time.

Q: What happens if a card transaction fails after being authorized? 
A: Failed settlements are relatively rare but can happen due to insufficient funds or technical issues. 

Q: Do weekends affect card payment processing? 
A: Authorization works 24/7, but settlement only occurs on business days. Weekend transactions usually settle on Monday.