Faster Payment Processing: How Real-Time Funding Improves Cash Flow

Getting paid should be simple, but for many businesses, credit card payment processing feels like a perpetual cycle of waiting. Transactions are approved, but the funds take days - sometimes longer - to finally land in the business’s account. Meanwhile, expenses pile up, invoices go unpaid, and daily batch reconciliations turn into a manual, time-consuming guessing game.

For Sarah, an operations manager at a B2B company, these delays were a constant headache. Customers would pay by credit card, but unpredictable funding cycles left her team scrambling to balance cash flow and hours spent with daily batch reconciliation.

And let’s not even talk about those surprise deductions - credit card processing fees were pulled from each batch deposit, making it even harder to track what was actually available in the bank. Traditional payment processing wasn’t just inconvenient, it was a roadblock to smooth operations.

Enter real-time funding: a modern approach that puts cash in your account as soon as a transaction is processed. No more waiting, no more guessing - just financial clarity and control.

What Is Real-Time Funding?

Real-time funding enables businesses to access funds immediately after transactions are approved, with payments posted directly into an FDIC-insured bank account. Unlike traditional payment processing, which relies on batch settlements and delays, real-time funding ensures faster access to money, reducing financial uncertainty.

Modern payment technology plays a crucial role in enabling real-time funding.

Integrated solutions with Microsoft Dynamics 365 Business Central allow customer payments to be posted immediately against invoices and to the appropriate general ledger accounts.

This automation minimizes manual work, improves accuracy, and enhances financial visibility.

Six Key Benefits of Real-Time Funding for Businesses

1.     Faster Access to Funds 

Immediate cash availability improves liquidity. Instead of waiting two to three days for traditional deposits, businesses can access their money instantly.

2.     Instant Recognition of Deposits

Transactions are immediately recognized as cash deposits on the balance sheet.

This eliminates delays in financial reporting and removes the need for daily batch reconciliation, as individual transactions are deposited directly into the FDIC insured bank account instead of a daily lump sum batch deposit which occurs with a delay of 1-2 days (longer on weekends)

3.     Predictable Revenue Cycles

Real-time funding reduces uncertainty by accelerating cash flow, so businesses can forecast revenue more accurately and track customer payments more efficiently.

4.     Lower Processing Costs and Fee Savings

Businesses can potentially reduce processing fees by up to 30% when combined with Level 3 processing, which sends invoice line-item details to Visa and Mastercard.

Additionally, real-time funding eliminates many of the hidden costs that accompany traditional batch processing, helping businesses better manage credit card processing rates.

5.     Increased Operational Efficiency and Improved DSO (Days Sales Outstanding)

By accelerating revenue collection, businesses can reduce DSO, reduce time spent chasing payments, and improve the efficiency of posting payments against open receivables.

6.     Enhanced Customer and Member Experience

Faster transactions lead to greater customer satisfaction, as payment delays are eliminated. Real-time funding also reduces billing disputes caused by delayed settlements, ensuring a smoother financial experience for both businesses and their customers.

By following these steps, businesses can take full advantage of real-time funding and eliminate the inefficiencies of traditional payment processing.

How Businesses Can Implement Real-Time Funding

Adopting real-time funding is a straightforward process, but there are a few key steps to be aware of to ensure a smooth transition:

Evaluate Your Current Payment Processing System

Evaluate your current payment processing system to identify pain points such as settlement delays or reconciliation challenges. If waiting for funds is creating cash flow issues, real-time funding could be the right solution.

Choose a Payment Processor That Supports Real-Time Funding

Not all providers offer this real-time funding, so partnering with a solution like USTPay ensures seamless integration with Microsoft Dynamics 365 Business Central and other ERP systems.

Integrate Real-Time Funding Into Your ERP and Accounting System

Real-time funding integration ensures that payments post automatically to invoices and general ledger accounts, eliminating manual reconciliation. Businesses should work with an implementation expert if necessary to avoid disruptions.

Train Your Finance Team on New Processes

Finally, educating employees on how real-time funding works and how it impacts cash flow management will avoid confusion during implementation and help them adapt more easily.

NOTE: Don’t forget to update financial reporting practices to reflect instant transaction deposits.

Following these steps can be transformational in empowering businesses to take full advantage of real-time funding and eliminate the inefficiencies of traditional payment processing.

For additional insights on how ERP integration enhances financial operations, check out USTPay’s blog on Banking in ERP: A Smarter Way to Manage Cash Flow.

Why Choose USTPay for Real-Time Funding?

Choosing the right payment processing partner is critical to maximizing the benefits of real-time funding.

USTPay stands out by offering:

• Category of One Service – A dedicated, single point of human contact instead of 1-800 call centers or overseas support.

• Proven Reliability – A 90%+ client retention rate over the past decade demonstrates trust and consistent service.

• Seamless ERP Integration – USTPay integrates with Microsoft Dynamics 365 Business Central and leading eCommerce platforms, for a smooth, and intuitive payment experience. It’s the only open-modern payments platform on Business Central connected to 120+ payment gateways and processors giving users complete freedom of choice.

The Future of Payment Processing Is Here

Real-time funding is transforming how businesses manage cash flow, reduce costs, and enhance operational efficiency.

Dealing with settlement delays, manual reconciliations, and unpredictable cash settlement cycles doesn’t have to be part of the price that comes with business operations. With USTPay, you gain a powerful payment processing solution that integrates seamlessly with Microsoft Dynamics 365 ERP systems, ensuring financial stability and growth.

For more insights on how ERP integration enhances financial operations, check out our blog Banking in ERP: A Smarter Way to Manage Cash Flow.

Discover how real-time funding can transform your cash flow and eliminate payment delays. Contact USTPay today for a personalized demo or consultation and see how seamless, instant payment processing can improve your business operations.

About Wade Tetsuka:

Wade Tetsuka is a visionary leader with over 15 years of experience as President of U.S. Transactions Corporation, where he has helped transform the landscape of B2B merchant services.

His deep expertise in finance, coupled with a keen understanding of compliance and client management, has positioned UST–a leading Fintech company and Independent Software Vendor (ISV) for Microsoft Dynamics 365–as a trailblazer in helping businesses save money and streamline payment processes.

As the founder of Presidential Forum LLC, an exclusive network for C-level executives, Wade fosters thought-provoking discussions that shape industry trends and leadership strategies. His commitment to excellence and forward-thinking approach makes him a sought-after voice in both the Fintech and executive leadership arenas.

Connect with Wade on LinkedIn.