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For any U.S. business, cash flow isn’t just important—it’s the lifeline that keeps operations running, inventory stocked, and employees paid. If you’ve ever found yourself asking, why does Chase take so long to process payments?, you are certainly not alone. The frustration of delayed funds—whether they’re stuck in “pending” status or held for review—is a common challenge for merchants.

At Great West Pay, we believe that waiting days for your money should be a relic of the past. We know that understanding why delays happen is the first step toward finding a faster, more reliable merchant service solution. This article breaks down the complex world of payment processing, highlights the specific reasons for delays at major institutions, and shows you how choosing the right partner can streamline your cash flow.

The Hidden Journey: Why Payments Aren’t Instant

While accepting a credit card at the point of sale feels instantaneous, the actual transfer of funds, known as settlement and funding, is a multi-step process.

A transaction moves through authorization, posting, and clearing, with each step potentially adding time before funds become available. This entire journey involves several entities, including the customer, the business, the issuing bank (customer’s bank), the acquiring bank (merchant’s bank), and the card networks (Visa, Mastercard). Settlement—the final transfer of funds from the buyer’s account to the seller’s account—typically takes one to three business days for credit card payments.

So, what specifically slows down the process, causing you to wonder why does Chase take so long to process payments?

1. The Technology Barrier

A significant factor contributing to slow processing is outdated infrastructure. Many large financial institutions rely on legacy systems. While these systems are constantly being updated, discrepancies and compatibility issues between multiple gateways and processors can cause lag time, meaning some payments complete instantly while others take days.

Chase Paymentech, for instance, is classified as a legacy technology provider, and one major drawback is its outdated technology compared to newer industry players.

2. Security Holds and Verification

Banks frequently place temporary holds or delays on transactions, which is often reported by users. These holds are usually implemented for risk or fraud protection, especially for large or atypical deposits. For example, if a user attempts to transfer a large sum, the bank may flag it as atypical activity, triggering a security hold for review. A fund hold is a temporary restriction on availability, and while it safeguards your money, it introduces frustrating delays. These holds usually lift within a few business days.

3. Account Status and Policies

The time it takes for your funds to become available directly correlates with your account setup and banking relationship. For Chase customers:

If you use their QuickAccept® solution with a Chase checking account, you generally receive same-day funding if you settle by 8 PM ET, excluding Saturdays.

If you use standalone merchant services with a Chase bank account, you typically receive next-day funding.

However, if you use a non-Chase banking account, funding requires a transfer between financial institutions, meaning you will receive funds in 2–3 business days.

Furthermore, transaction posting procedures are specific to each bank and depend on the payment type and business rules. Insufficient funds or account-related issues can also lead to processing delays, requiring additional system verification.

Merchant Pain Points: Beyond the Delay

While delays impact cash flow, Chase merchants sometimes report other issues related to their payment processing relationship:

Customer Service Challenges: Some users describe Chase Payment Processing as “horrendous” and criticize the customer service, noting extreme difficulty in reaching representatives by phone and reporting hours-long hold times.

High Costs and Extra Fees: Chase is “definitely not the cheapest option on the market”. Their standard flat rates are high—starting at 2.6% + $0.10 for taps/swipes and 2.9% + $0.25 for online purchases. Merchants also frequently see a “plethora of other charges” on their statements, such as a Voice Authorization fee ($0.90), Chargeback fees ($10), and a monthly maintenance fee.

Negotiation Gaps: While larger businesses may qualify for competitive interchange-plus pricing, their overall pricing is not as competitive as other providers, and they often acquire clients through banking relationships rather than market-leading rates.

Actionable Steps to Minimize Your Wait

As a merchant, you can take proactive steps to ensure smoother, quicker processing regardless of your current provider:

Prioritize Transaction Accuracy: Always confirm sufficient funds are available and double-check account numbers and payment details before initiating a transaction to avoid rejections and delays.

Choose Faster Methods: Where possible, choose quicker transaction types and schedule payments during business days and hours.

Adhere to Limits and Documentation: Avoid drastically exceeding your stated processing limit, as this can trigger holds or account termination. For large transactions, ensure you have proper documentation, such as a numbered invoice and signature, ready to provide if requested.

Manage Chargebacks: High chargeback rates can signal dissatisfaction or unverified cards, which is detrimental to your processing history. Tools to minimize chargebacks are key.

The Great West Pay Solution: Optimized for Speed and Value

While industry standard settlement time is often one to three business days, Great West Pay is focused on optimizing your cash flow with modern technology and transparent pricing.

We understand that for U.S. businesses, reliable and fast funding is paramount. Unlike legacy providers that struggle with compatibility and charge high default rates, Great West Pay aims to provide the efficiency and reliability that today’s market demands, offering a system where deposits are fast and rates are highly competitive.