How Does Payment Processing and Fund Availability Work in Lovingly POS and Shop?
Understanding how payments are processed and when funds become available is crucial for managing your business effectively. This article provides a comprehensive overview of payment processing and fund availability in Lovingly POS and Shop.
Overview of Payment Processing
Payment processing in Lovingly POS and Shop involves several steps to ensure secure and efficient transactions. The process varies slightly depending on the type of order and its delivery status.
Payment Capture Timing
For POS Orders
Payments for POS orders are processed immediately at the time of the transaction. Funds are captured as soon as the customer pays, and there is no need to wait until the order is delivered or marked as delivered.
For Orders in Lovingly Shop
At checkout, the system places an authorization hold to verify the availability of funds. The payment is officially captured only after the order is marked as delivered. This approach helps prevent processor fees on refunds issued before delivery.
Fund Availability Timelines
For POS orders, funds are typically deposited into your bank account following your standard payout timeline, which is usually within 2–3 business days of the transaction.
For orders in Lovingly Shop, funds are deposited within a few business days after the payment is captured, which occurs shortly after the order is marked as delivered.
Authorization Holds and Refund Prevention
Authorization holds are placed at checkout to verify the availability of funds. These holds are not actual charges but temporary holds on the customer’s account.
The official charge is captured only after the order is marked as delivered. This process minimizes the risk of incurring processor fees for refunds issued before delivery.
FAQs for Common Scenarios
What happens if an order is not marked as delivered?
If an order is not marked as delivered, the payment remains in the authorization hold stage and is not officially captured. It is essential to mark orders as delivered promptly to ensure timely payment capture and fund availability.
Are funds available immediately after a POS transaction?
Funds from POS transactions are processed immediately but are typically deposited into your bank account within 2–3 business days, depending on your bank’s processing times.
By understanding these processes, you can better manage your cash flow and ensure a smooth payment experience for your customers.