Quote Originally Posted by Yankeeman07 View Post
That is the advantage of credit card splits / lock box - Negative days are not a factor and moving forward,
with lock box in place - that eliminates ACH Rejects.

Contact me if you wish to discuss.
That's an extremely poor way to look at underwriting. If the merchant is already negative every single day of the month, and then you come in and take a 25%+ credit card holdback, they're going to go that much further into the hole. How long do you think that's sustainable before the merchant goes belly up?

I agree that you can get away with a merchant having more negative days than would be acceptable on an ACH program, but some of these funders are idiots funding merchant splits with 15+ negative days every month. Only a matter of time before they open up another terminal and start running the majority, if not all, of their credit card deposits through there citing "people just haven't been paying with card as much lately".