Key Concepts in Tip Payout Funding
When we process your payouts, the process involves two main steps:
Upfront Payment (The Float): We pay your employees their tips directly and upfront. This means the money leaves our account immediately to ensure your employees are paid on time, even before the funds are transferred from your bank account. We are essentially floating the money for a short period.
ACH Request (The Reimbursement): After the payroll disbursement, we initiate a request to collect the necessary funds from your designated bank account. This request is performed using the Automated Clearing House (ACH) network.
Timeline for Reimbursement
After we pay your employees, the ACH request for the amount paid out is immediately sent to your bank account, and we receive the ACH the following business day.
Example: If the tip payout is processed on a Tuesday, the ACH debit will typically be received on Wednesday or Thursday.
Important Note Regarding Bank Accounts
It is critical to ensure that the designated bank account always has sufficient funds to cover the full payroll amount, as the ACH request will arrive shortly after your employees are paid.
❗ Please Note: The ACH process is a standard banking procedure used for electronic money transfers. The ACH request amount will precisely match the total net amount we paid out to your employees.
❓ Frequently Asked Questions
Why do you float the money?
We float the money to guarantee your employees are paid on their scheduled payday without delay, regardless of the bank processing time for the ACH debit from your account.
What is an ACH Request?
An ACH request (or ACH debit) is the electronic instruction sent to your bank, authorizing the withdrawal of the specified amount to reimburse us for the payroll funds we advanced (floated).