The settlement problem.
An exasperating situation that impacts any business is waiting for the settlement of EFTPOS/Credit transactions to clear. It is frustrating to have the funds and yet be unable to use them.
What is happening is that the money passes through several banks and accounts. The banks will only release the funds after they do checks on each stage of the transfer. Along each step of the transaction, the accounts must balance. They can take days, even with our computerised systems today. Generally, the banks work on three-day model business days, which tends to mean two to four business days.
Plus, transactions made on a weekend, a public/bank holiday, or after the currency cut-off time generally are processed the following business day.
How to speed it up?
-Cashout is the best way. Some banks like tyro have no fees on cashout, so you get the funds instantly with no fees. If you are with tyro, I suggest you experiment with this option. As it has no fees, you can use it for low-margin items as a bonus.
-Try to avoid banks that do not have their clearing houses. What you are doing here is adding a delay.
-Check your EFTPOS/Credit provider; almost all have a way to set up an account to speed up the transfer speed.
-Check your bank's policies; some have a policy written up as day, no business day. If so, take note there is a big difference.
-Avoid international cards if possible. This can be a problem as the funds must travel through the SWIFT network. So the funds go from an Australian Bank (you) to the SWIFT network. Then to your customer's bank (often overseas) with their business policy. Now back to SWIFT before hitting the Australian banks with their business policy.
