Okay, so I have a client renewing with them, only owes a couple thousand, getting 13,000ish. I have paid Pearl off before but havent done much with them as far as Renewals go. I do know there is a 5 day lag with their ACH system and how that works when they are paid off, but what happens to that money on a renewal?

Example: Merchant X owes $2000 and is paying $100/daily. He gets a renewal(say $10,000) and nets $8000, minus UW fees. Merchant X truly owes $1500(lets assumehe has not missed a payment). My qquestion is: What happens to that $500? Does it get credited towards the balance(makes sense)? Wired back to Merchant X once the system catches up(cool)? Or, does it just vanish into thin air(Grimy ****)? I have heard it is #3 vanishes into thin air. Please tell me this is not true.....or at least entertain me by justifying it if it is.