One of the most common questions we get is how long it takes to receive the money collected through Groundwork.
Card Processing Times
Cards typically take 2-3 business days to reach your bank account. When card payments are first charged they will appear as Processing and transition to Paid, usually within one business day. It then takes one additional business day to transfer the money from your Groundwork escrow account to your bank account. We operate your escrow account for you and transfer the balance automatically each day.
Note: the very first card payment on your account starts a 7 business day hold on card payments. After that 7 days is up, card payments go to the 2-3 business days from there on out. This hold is put in place by our banking partner to prevent online payment fraud from new accounts.
Bank (ACH) Processing Times
Bank payments take longer since they use the ACH system. Typically bank payments take 5-7 business days to reach your bank account. Bank payments will transition from Processing to Paid in about 4-5 business days and then be transferred to your bank account which takes an additional day or so.
Because of bank processing times, we suggest scheduling payments at least a week before you need the money.
Why do bank payments take so long?
There are a couple of things that affect ACH payments. First, banks only process ACH payments on weekdays that are not bank holidays, i.e. business days. Further, the business day the transaction is created on depends on the time of day the transaction is initiated. If the transaction is initiated before 3 PM PT it will be submitted to the ACH network. If it's initiated after, the transaction won't be submitted until the next business day which will be considered the first business day of payment processing.
The longer processing times for bank payments are to ensure the payer has the funds in their bank account and to reduce the risk of online payment fraud. This allows us to offer ACH payments to parents for free.
If you have any questions, drop us a line using the live chat widget on the site or at [email protected]