How long deposits take
A card sale does not reach the bank account at once. The processor first settles the sale: it collects the money from the card networks and sends it on. Each provider publishes its own timing.
| Provider (Canada) | Published deposit timing |
|---|---|
| Square | “usually transferred within 36 hours or 1–2 business days of a transaction.” Before 5 PM PT / 8 PM ET: “the next business day.” |
| Helcim | “Next-business-morning deposits on credit card and debit transactions” |
| TD Merchant Solutions | Before cut-over on a business day: “settlement will generally occur within one to two Business Days” |
| Stripe | First payout and later payouts listed below |
Square words its standard timing in more than one place. Its pricing page says both “as soon as the next business day” and “one to two business days.” Its fees page says “Standard next-business-day deposits are included.”
Stripe’s first payout and later payouts
Stripe’s own pages word the first payout differently:
| Stripe page | First payout | After that |
|---|---|---|
| Payouts documentation | 7 calendar days settlement timing; first payout “typically” scheduled “within 7–14 days, depending on your industry, country of operation, and risk level” | 3 business days |
| Support article, “Default payout speeds in Europe and Canada” | “a delay of 7 business days on your first payout” | the default speed of the market, “generally 3 business days” |
The 3-business-day speed applies to eligible accounts, per Stripe. The support article says “risk criteria might prevent your account from changing to the default payout speed.” Stripe’s balances page explains that a card payment shows as pending until it settles, then moves to the available balance, which can be paid out.
Faster payouts, for a fee
| Provider | Faster option | Published fee |
|---|---|---|
| Square | Instant transfer | 1.95% per transfer |
| Stripe | Instant Payouts | 1% of the payout, minimum CA$0.60 |
Square says new sellers start with “one instant transfer per day of up to $500,” which may rise to $5,000.
What a reserve is
A reserve is money a processor holds back from a business’s sales to cover chargebacks and refunds. A chargeback is a sale reversed by the customer’s bank after a dispute.
Square’s Reserve FAQ says: “Square uses what’s known as a ‘rolling reserve,’ in which card payments subject to a reserve have a percentage set aside and released on a rolling basis. These funds still belong to you.”
Stripe’s balances page says Stripe “might create a reserve balance on your behalf to ensure that your Stripe account can cover any expected incoming refunds or disputes,” and that this money cannot be paid out “until the reserve hold period is complete.”
Why a processor may set a reserve
Square lists factors it considers:
- Prepayment. “If you are collecting payment in advance of delivering the purchased goods or services.”
- Chargeback rates in the industry. Square names home contracting and repair, professional services, travel and tourism, and custom-made products such as furniture.
- The account’s own chargeback rate.
- Sporadic processing activity: changes in sale sizes, methods or volume.
- Being new to Square, with no processing history.
Square also says its standard and custom transfer schedules have no limits: “We won’t hold funds based on the amount, frequency or type of transaction.”
Notice and review at Square. Square says merchants get notice “by email and in your Square Dashboard before the reserve goes into effect,” and that “Accounts with reserves will be reviewed after a minimum of six months.”
What the contracts say
| Provider | What its terms say about holding funds |
|---|---|
| TD | TD may require “that you fund a reserve or provide other security.” It may also, “at any time and without notice to you, including while we or a Payment Card Network complete an investigation,” withhold settlement or freeze funds. |
| Helcim | Helcim “may withhold funds by temporarily suspending or delaying payouts” or set a Reserve “for any reason related to your use of the Services,” in an amount “reasonably determined by us to cover potential losses.” |
| Square | Reserve terms are shown in the Reserve Dashboard, with “current, future, and past reserve terms.” |
After an account closes
- TD: within 30 days of termination, TD credits settlement funds “less a holdback.” The holdback covers amounts due “in the 180 days after termination,” and the unused part is credited after that period.
- Helcim: may require an additional reserve, “maintained for a minimum of six (6) months from the termination date.”
More: Early Termination Fees.
Where to go from here
More on disputes: Chargebacks. Provider pages: Square, Stripe, Helcim and TD Merchant Solutions. What each one asks for at sign-up: Getting Approved for a Merchant Account.
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