Split Processing: Meaning in a Merchant Cash Advance
Split processing is a way to repay an advance where your card processor sends the funder its share of each card batch before the rest reaches you. The payment moves with your card sales automatically. It's less common than a fixed ACH debit now, and it can tie you to a processor the funder works with.
Where does it show up?
In the payment method section of the contract, and in a separate agreement with the processor.
What does it look like in practice?
With a 10% split, a $3,000 card batch sends $300 to the funder and $2,700 to you. A $1,500 batch sends $150. Nothing needs reconciling, because the payment already follows sales.
Which owner question goes with this term?
Can I get an MCA if I don't take many card sales? Answers to the questions owners ask about this term, with what to ask the funder.
Who does split processing fit?
Split processing suits businesses where most sales go through cards, like restaurants, salons and retail shops. Businesses paid mostly by check or ACH usually get a fixed debit instead.
A term on your offer you don't recognize?
Send us the line and we'll tell you what it means. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.