Risk management and payments technology provider linked2pay will partner with Push Payments to develop an Instant Merchant Settlements service.
The companies will offer merchants a "real funds" settlement of their card receipts into their bank account in less than a second through a 24/7 service. The companies did not disclose the name of the merchant acquirer that will resell the product.
"This changes the cash flow options for millions of business owners," Robert "Jay" McShirley, CEO of linked2pay, said in a Wednesday press release.
Many acquirers and card service providers currently offer merchants next or same day settlements as a premium funding option, but the Instant Merchant Settlements will allow money acceptance at any time for those businesses that do not operate during normal business hours.
The system will utilize linked2pay’s patent pending merchant enrollment and boarding process that instantly authenticates ownership of a debit card (connected to the merchant bank account), to ensure secure delivery of service. Once a business is enrolled, the acquirer manages and controls the merchant approval and funding process. Once approved, Push Payments will facilitate the transaction, allowing the merchant to receive the funds instantly, and manage the settlement process for the acquirer.
"Instant merchant settlements are an ideal application of real-time payments, providing game changing value and liquidity for businesses," Travis Dulaney, CEO of Push Payments, said in the release.
Linked2pay added the Push Payments real-time payments platform to its bank offerings late in 2016, helping its bank clients to offer branded, real-time Automated Clearing House payments through linked2pay's white-label service.