TabaPay supports real-time movement (instant availability) of funds through push and pull transactions. While funds may be available to recipients immediately, settlement between TabaPay, its banking partners, and payment networks occurs separately.

TabaPay provides settlement instructions to its banking partners each business morning, Monday through Friday, excluding bank holidays. Settlement is generally completed by 9:00 AM PT.

Pull vs Push Transactions

Prefunding Disbursements

TabaPay and its Sponsor Bank use a prefunded settlement model (good funds model) to ensure funds are available for disbursements.

Clients must maintain sufficient funds in their FBO account to cover disbursement activity and applicable network fees, including interchange.

As a general guideline, clients should maintain at least one day's forecasted disbursement activity in the FBO account. Additional funds should be maintained to cover weekends and bank holidays.

For example, because settlement occurs on business days, Friday through Sunday activity is generally settled on Monday.

For more information about settlement adjustments and daily funds movement, refer to Daily Settlement Operations.

Purchase Reversals and Settlement

Purchase reversals are automatically netted against the merchant's settlement amount. The reversal amount reduces the funds included in the applicable settlement.

Purchase reversals cannot be configured as separate debits from the merchant's settlement account.

Limits

Clients configure a Daily Program Limit for disbursement activity. When this limit is reached, additional disbursement activity may be stopped until the limit is adjusted.

TabaPay recommends configuring low-balance alerts to notify clients when disbursement activity reaches 90% of the daily limit.

If additional funding capacity is required:

1. Add sufficient funds to the FBO account.
2. Request a daily limit adjustment through TabaPay Support.
3. Include Client Name - Limit Change in the subject line and explain the reason for the requested increase (or decrease) of the limit(s) for the Client.

Settlement Flows

See the following settlement flow diagrams for both Goss and Net settlement funds flow.

Gross Settlement Funds Flow (Gross Interchange Fees)

Gross Settlement includes a push example and pull example.

Disbursement Settlement (Gross)

1. T-1: FBO Bank Account is prefunded in the AM for the full day of anticipated volume.

1. Disbursements are sent from a designated account with the prefunding requirement mentioned in Prefunding Disbursements.
2. Transactions initiated and successful transactions are authorized.
3. Transactions activity for settlement is cutoff at 3:00 AM PT. Settlement will occur at approximately 9:00 AM PT. $100 Reaches the destination while fees $0.25 is taken from a designated fee account.

Pull Settlement (Gross)

1. No funding needed for pull transactions. Customer will have their account funded.
2. Transactions initiated and successful transactions are authorized.
3. Transactions activity for settlement is cutoff at 3:00 AM PT. Settlement will occur at approximately 9:00 AM PT. $100 Reaches the destination merchant account while fees $0.25 + $2.00 is taken from a designated fee account.

Net Settlement Funds Flow (Net Interchange Fees)

Net Settlement will net the fees from the merchant-designated account.

1. No prefund needed when expected pulls exceed disbursement activity.
2. Transactions initiated and successful transactions are authorized.
3. Transactions activity for settlement is cutoff at 3:00 AM PT. Settlement will occur at approximately 9:00 AM PT. $98.50 Reaches the destination merchant account from netted push and pull + interchange fees.