1. What does cutoff time mean?
The “cutoff time” is the deadline by which all transactions must be submitted to the payments processing system. It marks the point when the transaction window closes, and the cumulative transactions (batch file) are submitted (batched) to the ACH network for processing. Transactions processed after the cutoff time will be included in the next day's batch; this means that all transactions up until the cutoff time are grouped together and sent to the ACH network for processing.
Cutoff times are essential for managing the timing of transaction processing and ensuring that settlements occur within the expected timeframes. They help in maintaining the efficiency and reliability of the payment processing system.
2. What is the difference between cutoff and settlement times?
The cutoff time determines the deadline for including transactions in the current day's batch (which all transactions must be submitted for processing on a particular day), whereas the settlement time is when the actual transfer of funds from those transactions are officially transferred to the merchant's account.
Note: CSG Forte does not have control over the acquirer’s settlement time. When processing payments through a third-party acquirer outside of Forte’s service, settlement may be delayed depending on the acquirer’s settlement flexibility.
3. Can cutoff times change?
Yes, cutoff times can change. They may vary depending on the payment processor, the bank, or the type of transaction. In some cases, businesses may have the ability to adjust their own cutoff times, but it’s important to check with the payment service provider or financial institution for any updates or changes to the cutoff time.
In addition, the changes could be due to factors like system upgrades or changes in regulations, therefore, it is advisable for customers to stay informed about the specific cutoff times that apply to their transactions.
4. What are the cutoff times for ACH transactions?
CAD and USA ACH cutoff times are the same, but they can vary depending on the day the transaction is made. For same-day ACH transactions, the cutoff time is 1:00 PM PST.
| Period of week | Cutoff time |
|---|---|
| Monday to Sunday (except on bank holidays) | 6:30 PM PST |
5. What are the cutoff times for Credit Card (general processing)?
The cutoff times for credit card transactions vary depending on the payment processor; for that reason, it is advisable for customers to consult their processor for details. Each processor may have its own deadlines for when transactions must be submitted (cutoff time)
| Processor name | Cutoff time |
|---|---|
| GlobalPayments (East) | 8:01 PM PST |
| Elavon (Nova) | 9:00 PM PST |
| Elavon (ICG) | 5:00 PM PST |
| Vital (TSYS) | 8:01 PM PST |
| First Data | 10:00 PM PST |
| Vantiv | 5:10 PM PST |
Note: These times are reflective of when Forte begins to settle to each acquirer. Forte does not control the acquirer’s settlement time. Processing with a 3rd party Acquirer, outside of Forte’s service, may result in delayed settlement depending on the acquirer’s settlement flexibility.
6. What is a midnight cutoff?
A “midnight cutoff” refers to a specific deadline for submitting transactions set at 12:00 AM (midnight) in the merchant's time zone. This option is offered on a case-by-case basis to help merchants reconcile their deposits more easily. However, using a midnight cutoff can lead to delays in credit card settlement and funding.
For example, with Faster Funding, ACH transaction settlements will be delayed to a one-day hold and will incur fees consistent with a one-day hold.
Note: When a merchant is set up with a midnight cutoff, the time runs from 12:00 AM to 11:59 PM in the merchant's time zone.
7. What are the return times for ACH processing?
Returns processing occurs on weekdays at two different times.
| Period of week | Start hour |
|---|---|
| Monday to Friday | 5:00 AM PST |
| Monday to Friday | 10:00 AM PST |