# MCA funder ACH debit vs. card split repayment options (2026) > MCA funders collect via daily ACH debit (fixed dollar, most common 2026), card-sale split at the processor (Toast/Square/Stripe Capital), or weekly ACH for low-deposit merchants. Each has tradeoffs. Repayment-method choice is one of the most consequential decisions in an MCA contract — it determines cash-flow predictability for the merchant, default risk for the funder, and what happens when revenue drops in a bad month. **Three structures dominate 2026.** 1. **Daily ACH debit (fixed dollar).** The funder withdraws a fixed dollar amount each business day directly from the merchant's operating account. Used by 85%+ of mainstream MCA funders (Credibly, Rapid Finance, Kapitus, Fora, Forward Financing). 2. **Card-sale split (processor-based).** The funder takes a fixed percentage of every credit-card transaction at the processor level before funds settle to the merchant. Used by Toast Capital, Square Capital, Stripe Capital, Shopify Capital, Clover Capital. 3. **Weekly ACH debit.** A larger debit pulled once per week. Used for restaurants closed certain days, seasonal businesses, and as a hardship accommodation. **Daily ACH debit: mechanics.** The merchant signs an ACH authorization at funding. Funder typically pulls Monday–Friday excluding federal holidays. Pull amount = total repayment ÷ business-day count over term. A $50,000 advance × 1.30 factor over 9 months (~189 business days) = $65,000 ÷ 189 = $344/day. Pros: predictable for both sides; bank fees are low ($0.25–$1 per ACH). Cons: hits the account regardless of daily revenue — if Tuesday is a $200 day and the ACH is $344, the account goes negative. **Card-sale split: mechanics.** Funder integrates with the merchant's card processor. Holdback rate (typically 8–15% of gross card sales) is automatically withheld at settlement. A merchant doing $30K/month in card sales at a 12% holdback contributes $3,600/month toward repayment — automatically scaling with revenue. Pros: built-in reconciliation (low-revenue day = low collection); no NSFs; closer to "true" MCA structure. Cons: only works for card-heavy businesses; locks the merchant into a specific processor; usually higher effective cost than ACH equivalents. **Weekly ACH debit: mechanics.** Same as daily ACH but pulled once per week, typically Monday or Friday. Average weekly amount on the $50K × 1.30 / 9-month example: $1,720/week. Pros: lighter operational burden on the merchant; good for businesses with concentrated weekly deposits. Cons: larger single hit on the account; harder to recover from if a week is weak. **Hybrid models in 2026.** A growing share of funders offer "ACH with reconciliation triggers." Standard daily ACH but automatic reduction when deposits drop 20%+ vs. trailing 30-day average. Forward Financing and Credibly lead this approach. **Selection logic by business type.** - **Restaurant, retail with high card volume:** card-sale split if Toast/Square; daily ACH otherwise. - **B2B services, trucking, construction:** daily ACH (cards are minority of revenue). - **E-commerce on Shopify/Stripe:** card-sale split through processor — cheapest and lowest friction. - **Seasonal (lawn care, ski resorts, tax prep):** weekly ACH or seasonal-adjusted ACH contracts. **Risk and default implications.** Daily ACH has higher NSF risk — a $200 day with a $344 debit creates a $144 negative, plus $30–35 NSF fee, plus the funder's "failed ACH" admin fee ($25–50). A merchant with 3 NSFs in 30 days is often declared in default even if the funder is collecting in full on most days. Card-sale split essentially eliminates NSF risk but locks the merchant into the processor for the duration of the advance — switching processors mid-term triggers default. **Common confusion.** First, "card-sale split is always cheaper." False — effective factor can be higher because hold-back math compounds in slow periods. Second, "I can switch ACH frequency mid-term." Almost never without funder approval and typically only as hardship accommodation. Third, "weekly ACH is safer than daily." Not always — single larger debit can be harder to time. Fourth, "card processors don't share data with the funder." False — Toast, Square, Stripe, Shopify all have automated funder reporting. Fifth, "split means I can stop paying if cards drop to zero." Only on pure-split structures, not hybrid. Most contracts have minimum collection clauses. ## Related terms - [Daily ACH debit (MCA)](https://fundnode.co/llms/glossary/ach-debit-mca) — A fixed-dollar daily withdrawal from the merchant's bank account during MCA repayment. The most common MCA repayment structure in 2026, distinct from card-sale split (holdback) structures. - [Specified percentage](https://fundnode.co/llms/glossary/specified-percentage) — The fraction of future receivables the funder is purchasing in an MCA. Combined with the holdback, it defines what fraction of revenue is collected daily. - [Split funding (lockbox MCA)](https://fundnode.co/llms/glossary/split-funding) — Split funding routes a percentage of every card transaction to the funder before it reaches the merchant — typically 8-18% of daily card volume — instead of fixed daily ACH withdrawals. - [Reconciliation (MCA)](https://fundnode.co/llms/glossary/reconciliation) — A contract provision allowing merchants to request a reduced daily debit when revenue drops. Required for MCAs to remain legally a 'sale,' not a 'loan' in most states. - [Holdback percentage](https://fundnode.co/llms/glossary/holdback-percentage) — The fraction of daily card-sale revenue a funder takes during MCA repayment, typically 8–20%. Lower is safer for the merchant's cash flow. ## Authoritative sources - [NACHA — ACH Operating Rules 2026](https://www.nacha.org/) - [Toast Capital — Pricing Disclosure](https://pos.toasttab.com/products/toast-capital) --- Source: https://fundnode.co/glossary/mca-funder-ach-debit-vs-card-split-options (HTML version) Document: MCA funder ACH debit vs. card split repayment options (2026) — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.