Cash is the lifeblood of small businesses and managing cash flow can be the biggest pain point. According to SCORE, four out of five small businesses fail within the first five years from poor cash flow. Even with large receivables, having timely access to cash to cover payroll and inventory is a constant juggling act. Anything that can make cash flow faster, easier and simpler to predict is a benefit.
That’s why we’re excited to offer Same-Day Deposits* to Chase business bank accounts, at no additional cost. The new functionality will help tens of thousands of U.S. small businesses that use platforms like BigCommerce and Xero to get paid faster. It also showcases the combined capabilities of a Silicon Valley financial technology company and one of the world’s largest, most admired financial institutions. There are powerful benefits that can be unlocked by combining banking and payments and this is just the first.
Help your users get paid faster
Software platforms, and merchants, have been keenly interested in solving this issue. Over the last few years we have seen the emergence of different payout options offered by various institutions. For example, next-day and instant payout options have begun rolling out in the industry but they are still limited and expensive, costing merchants as much as 1.5% for same-day access to funds, or requiring push-to-debit functionality.
Putting payments and banking together under one-roof eliminates unnecessary steps in the process, like third-party clearing, and WePay and Chase are using that to our customers’ advantage. As a result, WePay is offering Same-Day Deposits to software platforms and their small businesses - at no additional cost. Rolling out throughout Q4 2019, payments approved before 5 PM PT will be deposited in the merchant’s Chase bank account that night.
Here’s a real-life example: a typical small-city restaurant opens for lunch through dinner six days a week, is closed Monday and is busiest Friday-Sunday. With Same-Day Deposits they will be able to process their Friday receipts through 5PM PT and receive payment in their bank account by Friday midnight. In the past, or with other providers, they would have to wait until Monday. And if payroll is cut on Friday, the impact of faster access to cash could be material.
How Same-Day Deposits work
Any platform integrated with WePay’s Link or Clear products will automatically be able to offer this to their merchants upon integration. A merchant onboards with WePay on their platform, and chooses a Chase bank account where funds will be deposited - it’s that simple. In addition, we are adding the ability to receive deposits on weekends and holidays as well as on business days - ensuring all businesses, such as restaurants, construction, or any platform without a traditional Monday-Friday schedule, can benefit from improved cash flow.
If a small business merchant has a Chase Bank Account, they will receive their cash same day for any approved transaction Sunday - Friday. Plus, Saturday transactions will be deposited Sunday morning.
For a non-Chase bank Account, deposits will occur on the next business day, depending on the receiving bank.
Payments are the lifeblood of any business and making payments faster, cheaper, and easier for small businesses is our focus. Access to funds is a huge pain point for businesses and being part of JPMorgan Chase puts us in a unique position to help solve this challenge. Same-Day Deposits is one new feature we're launching enabled by this partnership, but it's just the beginning. We are excited to continue leveraging the Chase ecosystem to expand the benefits we offer to our platform partners and the small businesses they serve.
*Same-Day Deposits are available to merchants on integrated software platforms with a 5:00 pm PT cut-off time for payments processed on WePay. Merchants must deposit into a single Chase bank account to be eligible. Payments approved by 5:00 pm PT are eligible. Funds are deposited into Chase bank accounts six days a week, excluding Saturdays. Funds deposited to non-Chase bank accounts may settle as soon as the next business day, depending on the receiving bank. All transactions are subject to WePay terms of service and exclusions therein, including risk assessment and fraud monitoring, which may result in delays. Available in the U.S. only. To create a faster, more cohesive settlement experience, WePay will no longer offer check-based settlements as an option. Merchants who are currently settling via paper checks will be asked to add their bank details to their WePay account to receive their deposits faster.