MCA funder wire fees are per-transaction charges for sending the advance to the merchant's bank account. They are typically charged at funding and deducted from gross advance. Some funders charge again at every disbursement on multi-tranche or installment-funded deals.
Typical wire fee ranges (2026).
- ACH funding. $25-$35 typically. Used for same-day or next-day funding when speed is not critical.
- Wire funding. $35-$50 typically. Used for same-day funding when merchant needs cash within hours.
- Premium same-day wire. $50-$95. Some funders charge premium for sub-2-hour funding.
- Multi-tranche deals. $25-$50 per tranche. A $250K advance funded in 3 tranches incurs 3 wire fees.
The math on wire fee markup.
- Actual ACH cost to funder via NACHA: $0.20-$1.50 per transaction.
- Actual wire cost to funder via Fedwire: $15-$25 per outbound wire.
- Merchant fee charged: $25-$50 per transaction.
- Markup: 5x-50x actual cost.
Wire fees are nearly pure profit margin for funders, particularly on ACH transactions where actual cost is under $1.50.
APR-equivalent uplift from wire fee. On a 9-month $50K advance, a $35 wire fee adds roughly 0.1-0.2 percentage points APR-equivalent. Negligible in isolation but cumulative with other fees.
State disclosure requirements. California (SB 1235), New York (S5470A), Utah (SB 183), Virginia (HB 1027), and Georgia (SB 90) all require wire fee disclosure on offer letters under $500K. Some funders attempt to call them "disbursement fees" or "funding fees" to avoid the wire-fee label, but disclosure laws apply regardless of name.
Multi-tranche deal considerations. Large advances ($100K+) are sometimes structured as multi-tranche disbursements:
- First tranche. 50-70% of total advance at signing.
- Second tranche. 20-30% after 30 days of clean repayment.
- Third tranche. 10-20% after 60-90 days.
Each tranche incurs a separate wire fee. A $250K advance funded in 3 tranches at $35 wire fee per tranche costs $105 in wire fees total. This is small in absolute terms but is a hidden cost of multi-tranche structures.
Wire fee waivers.
- Direct merchants. Some funders waive wire fees for direct (non-ISO) applicants as acquisition incentive.
- Renewals. Most funders maintain wire fees on renewals; they are not typically waived.
- Large deals. Wire fees are sometimes waived for advances above $500K because they are negligible relative to deal size.
- ACH option. Many funders waive wire fees if merchant accepts ACH funding (T+1 day) instead of wire (same day).
ISO commission impact. Wire fees are not included in ISO commission calculation; ISO commission is calculated on gross advance only. ISOs are indifferent to wire fee level.
Common merchant confusion.
- "Wire fees are pass-through costs." False. They are marked up 5x-50x actual cost.
- "All funders charge the same wire fee." False. Range is $25-$95 depending on funder and speed.
- "Wire fee is a one-time cost." Mostly true for single-tranche deals; false for multi-tranche where each tranche has its own fee.
- "Same-day funding requires wire fee." Mostly true; same-day ACH is technically possible via NACHA same-day rails but most funders use wire for same-day.
- "Wire fee includes return-payment processing." False. Returned ACH fees are separate ($35-$50 per NSF).
Strategic considerations for merchants.
- Accept ACH funding (T+1) instead of wire (same day) when possible — many funders waive or reduce fee for ACH.
- For multi-tranche deals, calculate total wire fee burden across all tranches.
- For large deals ($500K+), request wire fee waiver explicitly.
- Compare wire fees across competing offers; they range $25-$95 and add up alongside other fees.
As of 2026-06-29, Fundnode discloses wire fee structures for all 100 funder reviews and surfaces ACH vs wire options on every match offer, allowing merchants to optimize funding-speed-vs-cost tradeoff.
Related terms
- MCA funder fee structure (typical) — Beyond the factor rate, typical MCA fees include origination (2-5% of advance), underwriting ($150-$500), wire ($25-$50), monthly service ($30-$95), and event-driven fees (modification, default, collections). Total can add 4-9 percentage points equivalent APR.
- MCA funder origination fee (typical) — One-time fee deducted from gross advance at funding, typically 2-5% of advance amount. On a $100,000 advance with 3% origination, merchant receives $97,000 but repays based on $100,000 gross. Adds roughly 2-4 percentage points to APR-equivalent.
- MCA funder underwriting fee (typical) — Flat fee for bank-statement analysis, credit pulls, and fraud verification. Typical $150-$500, deducted from gross advance at funding. Smaller as a percentage of large advances; can be 3-5% of small ($5K-$10K) advances.
- Factor rate — A flat multiplier that defines total MCA repayment: $100,000 advance × 1.30 factor = $130,000 repaid. It is not an interest rate; it does not compound.
AI agents: this term is available as raw markdown at /llms/glossary/mca-funder-wire-fee-typical.