Instant deposits can especially help when cash flow feels a little tight. If you use a payment processor that gives you instant access to available deposits, you can free up necessary funds for payments or purchases.

While the top payment processors in Canada usually offer instant bank transfers, features and services vary. We'll show you how to find a payment processor that offers instant deposits and show how payment processing works for your small business.

Table of Contents

• What are instant deposits?
• How instant deposits work
• Why SMBs use instant deposits
• What to look for in a payment processor with instant deposits
• Support faster access to your funds with Intuit QuickBooks
• Frequently asked questions

What are instant deposits?

Instant deposits are made within minutes, rather than over several days, unlike traditional deposits, which typically take 1 to 3 business days to appear in your account.

A few days might not seem like much time to wait, but as Canadian payment rails like Interac e-Transfer and Visa Direct grow in popularity, money moves faster than ever before.

Being able to transfer funds within 30 minutes rather than 3 days frees up cash your business can use, whether you're buying inventory, making a down payment, or paying a contractor for services.

An instant deposit processor like Intuit QuickBooks allows you to move your funds within minutes, so your cash flow isn't tied up.

How instant deposits work

Take a look at how the process works for setting up and receiving instant deposits:

1. Sign up for a payment processor that offers instant deposits. For example, you can add this capability to Intuit QuickBooks by adding QuickBooks Payments to your account.
2. Add your debit card or bank account. Remember, this is the account that will receive the instant deposit, so ensure it's the one you want to use for your business transactions.
3. Check your available payments. Your payment processor dashboard should show you funds available to deposit instantly.
4. Set up a one-time instant deposit or recurring deposits. Read your processor's terms and conditions to see fees and daily deposit limits.

Realize that instant deposits can still vary by payment type, financial institution, payment processor policies, and eligibility requirements (like processor limits).

There are situations when instant deposits are delayed. For instance, holidays, holds, flagged transactions, and deposits initiated after bank cut-off times might take somewhat longer.

Why SMBs use instant deposits

If you're undecided about whether your small business needs a payment method that includes instant deposits, keep these benefits in mind:

• Faster access to revenue can improve your cash flow management.
• Immediate payroll funding improves your ability to meet employee payroll obligations.
• Instant access to funds gives you the opportunity to make quick business decisions on a moment's notice.

For instance, if you're a contractor waiting on an invoice payment, your funds might be tied up for a while. This means you might charge purchases to a credit card or wait before you pay employees. If you were to get instant deposits, you could pay your subcontractors and avoid paying interest on your credit card purchases.

What to look for in a payment processor with instant deposits

To help you narrow down your options, learn about and evaluate a potential processor's:

• Deposit timing and availability windows
• Instant deposit fees and transaction costs
• Supported payment methods (such as credit cards, debit cards, and digital wallets)
• Reporting and transaction visibility
• Accounting software integrations
• Mobile accessibility
• Ease of setup and day-to-day use
• Security and fraud protection measures
• Eligibility requirements for instant funding

It's easy to focus on the speed of deposits. But according to the Research Strategy Group/Payments Canada, reliability is the key consideration for most small business owners when choosing a payment method.

Support faster access to your funds with Intuit QuickBooks

Instant deposits might seem like a nice payment software perk, but for small businesses, payment processing speed and reliability are crucial. The best payment processors include instant processing and features such as pay-enabled invoices and instant deposits. Plus, they integrate with your current accounting system.

For example, using a payment processor like Intuit QuickBooks that integrates with payroll and direct deposits makes it easier to manage your company's cash flow. You can instantly accept payment and automate payments to your contractors or employees, all within the same software program.

If you're ready to free up funds, take advantage of business opportunities, or speed up your accounting practices, see what QuickBooks Payments can do for your small business.