Payments processing giant Vantiv, along with Visa, unveiled a joint service for small businesses that aims to speed up settlement payouts from daily sales.
Traditionally, sales payouts to businesses are subjected to the three- or four-day processing delay of the Automated Clearing House (ACH) network. But Visa and Vantiv say the new FastAccess Funding service will reduce settlement payouts to a matter of minutes.
The service is built around Visa's card-based platform Visa Direct, which claims to deliver funds in real time to debit cards. Through the integration with Visa Direct, Vantiv is utilizing the card-based platform that can transfer funds into the customer's direct deposit account linked to a debit card.
The firms explained that more than one-third of small businesses in the US cite cash flow management as a major challenge in running their business.
"Before FastAccess Funding, settlements could take days to finalize, and when you need to make payroll, order inventory and pay bills, that can be too long for some growing businesses," said Scott DeAngelo, SVP of product at Vantiv.
"With FastAccess Funding, Vantiv is able to leverage its scale, card brand relationships, and commitment to SMB growth to deliver a complete funding solution that fulfills a significant need; and we are proud to be the first major processor to do it."
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