--- title: Why Payment Facilitators Hold Funds description: Is your provider holding funds? Discover why and how to get next-day funding with a true Merchant Account Provider. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/paypal-holding-funds.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. 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Those who opt for [Payment Facilitators](https://blog.payjunction.com/payment-facilitator-definition/) reach this dilemma and it’s usually because their accounts are brand new, they've received a larger payment than normal or have a below-standard seller rating. But that still begs the question, why are Payment Facilitators holding funds? ## The Method The answer boils down to Payment Facilitator’s [underwriting policy](https://blog.payjunction.com/merchant-underwriting-unethical-billing/), or lack thereof. Payment Facilitators don't offer a traditional [merchant account](https://blog.payjunction.com/merchant-account/) nor are they true Merchant Account Providers. Payment Facilitators have one merchant account that they lend out to their customers to use. Since there is only one merchant account in use, there is no formal underwriting — essentially anyone can sign up. Sounds great, right? It’s a quick fix for any business needing to process credit cards in a pinch, but it leaves a huge opening for fraudsters, hence Payment Facilitators holding funds. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## Holding Funds Is Strategic Due to the lack of underwriting, Payment Facilitators can’t sufficiently screen who uses their mass merchant accounts. However, they can screen how their accounts are being used. To maintain order of what could become chaos, facilitators may hold funds up to 180 days to counter the risk of open enrollment. That’s potentially six months until you can touch your money. The amount you’re expecting will be put into your account, but it won’t be available for immediate transfer into your bank account. You’ll be notified via email or account notification explaining in detail why your funds are being held. While this is usually served with a side dish of serious frustration, facilitators aren't intentionally trying to infuriate you. Your money is put on hold in your account so it can be easily used in the event of a chargeback or dispute. This is done to protect both your business and the Payment Facilitator. Because the facilitator would be responsible for the merchant account if anything went (really) south, it makes sense that it would take steps to protect itself first. ## Get Proper Underwriting Using a Payment Facilitator has its benefits, but when it comes to running a business you need constant cash flow to be successful. You can’t have a facilitator holding funds every time you make a big sale. If you want to grow, you’ll need to move away from this quick fix and set up a true merchant account to guarantee your funds hit your bank account in a timely manner. First step? Start researching your options. There are [six key factors](https://blog.payjunction.com/merchant-service-provider-essentials/) to look for in a Merchant Account Provider, including next-day funding. Consider these traits and avoid providers that practice [unethical billing](https://blog.payjunction.com/tag/unethical-billing/) to ensure you get the best merchant account for your business. ## Pick the best Merchant Account Provider. [![ASK THESE 8 QUESTIONS](https://no-cache.hubspot.com/cta/default/635739/18e1c2c9-714d-4f22-bbae-9d4b4529734f.png)](https://cta-redirect.hubspot.com/cta/redirect/635739/18e1c2c9-714d-4f22-bbae-9d4b4529734f) Do you have a horror story about a facilitator holding funds? Tell us about it! We would love to see a conversation get started. [Questions and Answers](https://blog.payjunction.com/topic/questions-and-answers) [Credit Card Processing](https://blog.payjunction.com/topic/credit-card-processing) --- ##### [![What Are Pending Transactions?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/pending-transactions-explained.svg) What Are Pending Transactions?](https://blog.payjunction.com/pending-transactions-explained) ##### [![How Company Culture Led to PayJunction Glassdoor Ranking](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/company-culture-payjunction-glassdoor.svg) How Company Culture Led to PayJunction Glassdoor Ranking](https://blog.payjunction.com/company-culture-payjunction-glassdoor) ###### About Author ![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=200&height=200&name=Ursula_Librizzi.jpg) ### Ursula Librizzi Ursula is the sales and marketing operations manager for PayJunction. She oversees daily marketing tasks and liaises between the sales and marketing departments. ###### Related Posts ## [![Are You Being Refunded Interchange?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/interchange-refunds-unethical-billing.svg) Are You Being Refunded Interchange? So far, we’ve covered how some Merchant Account Providers practice unethical billing when charging you, but providers can also be deceptive when your business runs a return. In part five of this series, we will uncover how some providers intentionally fail to reimburse Interchange on returns.](https://blog.payjunction.com/interchange-refunds-unethical-billing) ## [![How to Spot a Hidden Volume Fee](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/volume-fee-unethical-billing.svg) How to Spot a Hidden Volume Fee Merchant Account Providers practice unethical billing in various ways, but some don’t stop at a hidden markup in wholesale costs or non-compliance fees. Some providers go as far as increasing your processing fees for the volume you process in a given month.](https://blog.payjunction.com/volume-fee-unethical-billing) ## [![Unethical Software Providers Penalize You for Using Other Merchant Account Providers](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/software-providers-unethical.svg) Unethical Software Providers Penalize You for Using Other Merchant Account Providers Running your business efficiently may mean using multiple providers to satisfy all your needs. This could include client or inventory-management software, an e-commerce hosting platform and a Merchant Account Provider to process in-person and online payments.](https://blog.payjunction.com/software-providers-unethical) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. 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