How Long Do Credit Card Payments Take To Process?

how long do credit card payments take to process

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Credit card processing is essential whether you’re running a brick-and-mortar store or an e-commerce website. In fact, 80% of consumers prefer paying with credit cards instead of cash.

If you’re a business owner who takes credit card payments, you’ve likely wondered, “How long do credit card payments take to process?

It depends, but most credit card companies process payments within one to three business days.

However, there’s more information you must know.

I wrote this guide discussing how long credit card payments take to process. I’ll also explain crucial credit card processing terminology.

Let’s begin.

How Long Do Credit Card Payments Take To Process?

Whether your customers pay online or in-store, you probably wonder, “How long does it take for a credit card payment to post?”

Credit card payments generally take one to three business days to post or reach the merchant’s bank account.

However, the timeline isn’t conclusive since the transaction process involves several stages and different entities.

How Long Does It Take To Process a Credit Card Payment Online?

How long does a payment take to process? When do credit card transactions post?

Most credit card companies process electronic payments in one to three business days, whether in-store or online. However, don’t fret if it takes longer than usual, especially involving larger settlements.

Card issuers must authenticate, authorize, verify, and settle transactions with banks or credit unions, which usually takes a few business days.

Why Do Credit Card Payments Take So Long to Process?

How long does a credit card payment take to process?

Credit card payment processing involves multiple stages.

Authentication and authorization happen instantaneously, but the settlement stage takes time because it involves moving the funds the buyer owes you to your bank account.

How Does Credit Card Payment Processing Work?

how long do credit card payments take to process

Payment processing involves these stages

  • Authentication
  • Authorization
  • Verification
  • Settlement

Here’s how payment processing works.

  1. Your customers pay online or swipe or insert their debit or credit cards into your point-of-sale device. Your payment processor receives the information necessary to verify the transactions.
  2. Your payment processor authorizes the payment with the card’s network (ex., Visa, Mastercard, Discover, etc.) or another service that facilitates electronic funds transfer.
  3. The card’s network sends the required information to the customer’s issuing bank to confirm its validity.
  4. The customer’s issuing bank verifies the card’s validity, available funds, and credit limit. It may decline the transaction.
  5. Your store’s payment terminals gather every transaction into a batch for settlement processing, which often takes two business days.
  6. At a specific time every weekday, your payment terminals send a batch of authorized and authenticated payments to your payment processor.
  7. Your credit card payment processor sends the transactions in batches to different card networks, which request funds from the customers’ issuing banks.
  8. Once the settlement stage is complete, your bank will receive the funds. The customer’s bank adds the transaction to your customer’s credit card bill.

Do Credit Card Payments Process on Weekends?

Do Credit Card Payments Process on Weekends?

Have you asked yourself, “What if my credit card payment is due on a Saturday?”

Most banks and other financial services don’t process funds on weekends and during bank holidays.

Merchants receive funds from Saturday, Sunday, and Monday transactions simultaneously.

Frequently Asked Questions

Frequently Asked Questions

How Long Does It Take for a Credit Card Payment To Go Through?

It usually takes one to three business days for a credit card payment to go through, whether customers pay online, in-store, or via phone payment. Payments by mail take a few days longer.

Payment processing is quicker if the customers’ credit card is linked to their checking account and both are from the same bank.

How Long Does It Take a Credit Card Payment to Clear for a Weekend Transaction?

It usually takes longer than the standard one-to-three-day timeframe because weekends are non-business days for banks. Banks process weekend transactions on the next business day.

When Does Discover Post Payments?

How long do Discover credit card payments take to process?

Discover will credit payments to your account on the same business day if they receive them before midnight Eastern Time. However, Discover doesn’t process payments on Saturdays or bank holidays.

If Discover receives credit, debit, or online payments on a bank holiday or after midnight, it will process them the next business day.

How Long Does It Take for OpenSky Payment to Post?

This credit card issuer processes the payment the same business day if it receives the transaction before the daily cut-off time.

What Is Citibank Credit Card Payment Processing Time?

Citibank processes credit card payments within 24 hours of receiving them.

How Long Does Amex Take to Process Payment?

If customers pay online or in-store, American Express can process the credit immediately (same day) or up to five business days.

How Long for Capital One Payment to Post?

Capital One will post payments received before 8:00 p.m. Eastern time on the same business day by midnight. After this cut-off time, they will process payments by the next business day at midnight.

What Is Chase Credit Card Payment Posting Time?

This credit card company processes payments on the same business day, except on Friday evenings (between 8:00 p.m. and 12:00 a.m.) and Saturdays.

How Long Does It Take Pending Credit Card Payment to Post?

A pending payment takes time (usually three to five business days) because the funds are on hold. In some cases, it can take up to ten business days.

Are Credit Card Companies Required to Send Statements?

If you run an ecommerce business, you’ll receive merchant statements and electronic or paper invoices your payment processor will send you monthly.

These merchant statements include these details.

  • Every interchange rate, including its final cost

  • The number of transactions

  • Sales volume for each interchange rate

A customer’s statement shows every transaction in their credit card account.

Every payment processor and credit card issuer has to send statements to merchants and customers so they can review the transactions, fees, and surcharges.

How Long Does It Take for a Payment to Show on Your Credit Card?

For credit cardholders, most lenders process payments in one to two business days.

Don’t worry if it’s taking longer, especially if you have a sufficient credit limit and paid before the due date.

The Bottom Line

I hope my guide made it easier for you to understand credit card processing times.

You can use the information in this article to help ensure you always have an adequate cash flow for your business.

If you run an ecommerce business, consider accepting digital wallets like Amazon Pay as a payment method.

Written by: Omar Deryan

Founder of OJ Digital Solutions

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