When you start processing payments for your business, it's important to understand how those funds will be deposited into your bank account.
| Helcim uses a system called gross deposits. If this is a new term for you, keep reading to learn more! |
This article will explain what gross deposits are and how they work, so you can easily keep track of your income and expenses.
In this article
What are gross deposits?
To put it simply, Gross Deposits mean that the total amount from your sales is deposited into your bank account.
| Let's say you had $1,000 in sales from credit card payments today. With Gross Deposits, the full $1,000 will appear in your bank account. |
How gross deposits work with fees
While the total sales amount is deposited into your account, processing fees still apply to those transactions. These fees are then withdrawn from your bank account, usually around the same time, as a separate transaction.
So, in our example, if the processing fees for the $1,000 in sales were $20, you would see two transactions in your bank account:
A deposit of $1,000 (the gross deposit)
A withdrawal of $20 (the processing fees)
Why Helcim uses gross deposits
Helcim uses gross deposits to provide you with a transparent breakdown of your deposits.
This system allows you to see the total sales amount deposited into your account, which is helpful for accounting purposes.
You can also easily see the fees that apply to those transactions, as they are listed separately.
| By separating the deposit amount from the fees, it's easier to reconcile your sales and expenses. |
Conclusions
In summary:
Gross deposits mean the total amount of your sales is deposited into your bank account.
Processing fees are then withdrawn as a separate transaction.
This system provides clear financial data for accounting and reconciliation.
Next Steps
Curious about other aspects of bank deposits? Check out these articles to learn more.
FAQ & Troubleshooting
Why do I see both a deposit and a withdrawal on the same day?
With Helcim's gross deposit system, the total amount from your sales is deposited into your bank account.
Then, the processing fees for those transactions are withdrawn from your bank account, often on the same day. So, you see both a deposit (for the total sales) and a withdrawal (for the fees) in your account.
How do net deposits work?
In contrast to gross deposits, "net deposits" would involve having the processing fees subtracted from your total sales amount before the resulting amount is deposited into your account.
With net deposits, you would only see one transaction: a deposit for the sales amount minus the fees.
How do I lower my fees?
Helcim is committed to transparent pricing. There are no hidden fees.
That being said, here are some ways you can potentially lower your processing costs:
Volume discounts: As your business grows and your processing volume increases, you may become eligible for a lower processor margin. Contact our support team to inquire about volume discount eligibility.
Interchange optimization: If your business processes B2B or B2G transactions, then Helcim's Level 2/3 Interchange Optimization can help you potentially qualify for lower processing fees by providing the necessary transaction details to the card network.
Fee Saver: Helcim also provides tools that allow you to pass on your credit card processing fees to your customers, enabling you to accept credit cards at no cost.