What Are Credit Card Merchant Deposits?
Credit card merchant deposits refer to the lump-sum deposits made by payment processors when they settle batches of card transactions. In MCA and small business lending, these deposits serve as a key indicator of sales volume and customer activity.
Merchant deposits typically appear during bank statement reviews. Operators use them to understand revenue patterns, confirm that businesses are actively transacting, and spot gaps or volatility in sales.
How Do Credit Card Merchant Deposits Work?
Credit card merchant deposits are generated through the card payment settlement process.
- Transaction collection: Customers pay by credit card, and payments are routed through a merchant processor.
- Batch settlement: The processor aggregates daily or periodic transactions.
- Deposit posting: The processor sends a lump-sum deposit to the merchant’s bank account.
- Statement visibility: Deposits appear as recurring entries in the bank statement.
In Heron, merchant deposits are recognized automatically during scrubbing.
- Automated parsing: Bank statements are ingested, and deposits are categorized as card settlements.
- Pattern recognition: Heron identifies the frequency, size, and regularity of merchant deposits.
- Structured outputs: Results such as “weekly card deposits” or “daily settlement inflows” are written into CRM fields.
- Next action: Stable deposit patterns support underwriting, while irregularities can trigger review.
This saves underwriters from manually tracing deposit activity across statement lines.
Why Are Credit Card Merchant Deposits Important?
For brokers and funders, credit card merchant deposits are important because they reveal true business revenue. Consistent deposits show healthy customer activity, while irregular or declining deposits may signal instability.
Heron makes deposit recognition reliable at scale. By flagging these deposits automatically, it improves accuracy and reduces turnaround time in underwriting.
Common Use Cases
Credit card merchant deposit detection is widely used in underwriting and revenue analysis.
- Confirming that a business has active, ongoing card-based sales.
- Comparing deposit amounts across months to check for consistency.
- Flagging applicants with declining deposit trends.
- Writing structured deposit data into CRM fields for underwriter review.
- Using deposit regularity as part of eligibility and appetite checks.
FAQs About Credit Card Merchant Deposits
How does Heron detect credit card merchant deposits?
Heron scrubs bank statements for deposits tied to merchant processors, categorizes them as card settlements, and records them as structured fields in the CRM.
Why are credit card merchant deposits valuable in MCA underwriting?
They provide direct evidence of active sales and customer activity. Consistent deposits indicate stable revenue, which supports repayment ability.
What outputs should teams expect from merchant deposit detection?
Teams receive CRM fields showing deposit frequency, amounts, and regularity, helping underwriters quickly assess sales stability.