Pinch offers T+2 settlement times on Direct Debits, meaning you get paid on average 2 business days after a direct debit is submitted.
Processing payments from bank accounts is different to card payments. They differ because the banking system does not indicate to us immediately that there are funds available. Because of this, you'll see a different status for a bank account payment called "Processing". This indicates that we have submitted the request to pull the payment from the bank account. This status generally remains in place for up to 3 business days before we settle the funds. Once settled, the payment status reads "Successful".
If we receive notification from the bank that there has been a problem (insufficient funds, bank account closed etc) then the payment status will change to a red message indicating the problem. This status will show anytime from 1 to 3 business days after we submit the payment to the bank.
Just to recap the different stages:
- Submitted to the bank for processing = "Processing"
- Successfully deposited to your account = "Successful"
- Failed due to a number of reasons = "Reason for failure"
If your Pinch account is connected to an online accounting system, you'll see that the invoice is set as paid at the time we submit the payment to the bank. This is so your accounting system does not attempt to send any outstanding invoice notifications incorrectly to your client. If the payment fails, we'll reverse the payment in the accounting system automatically.