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. For this reason, once a payout is completed from the TipHaus dashboard, we cannot reverse it or stop it.
ACH Request (The Reimbursement): After the payout is disbursed, we initiate an ACH request to collect the necessary funds from your designated bank account. This request is performed using the Automated Clearing House (ACH) network.
The bank account from where TipHaus collects the funds owed for payouts is set up at the moment of ETA onboarding and is based on a store-by-store level. Each store is linked to a bank account, and the bank account a store is linked to can be updated by contacting TipHaus support.
Timeline for ETA Payouts ACH Debit Request
After we pay your employees, the ACH request for the amount paid out is sent to your bank account immediately, and we receive it 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.
Since the ACH Network only operates during business days, payouts initiated during weekends or holidays will have the ACH pull initiated the next business day.
Confirming if an ACH Was Succesful
You can confirm whether an ACH was successful by navigating to the ETA page in the TipHaus Client Dashboard -> Payouts tab and selecting the Expanded view. You will be able to see the time the ACH was initiated, completed, and the bank account from which the funds were pulled.
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).