# MCA funder card processor integrations > Card-split MCA funders integrate directly with Stripe, Square, Toast, Clover, Worldpay, Fiserv, and TSYS to split sales at settlement; integration is a competitive moat unique to processor-affiliated MCAs. Card processor integrations enable a specific class of MCA — the card-split advance — where the funder collects repayment as a fixed percentage of each credit-card sale rather than via daily ACH. Stripe Capital, Square Loans, Toast Capital, Clover Capital, and Shopify Capital are the marquee examples; they have structural advantages because they own the processor. **The typical 2026 card-processor MCA landscape.** - **Stripe Capital.** Embedded in Stripe Dashboard for Stripe merchants. Auto-approved offers based on Stripe's transaction history visibility. - **Square Loans.** Embedded in Square Dashboard. Square owns the merchant relationship and card-processing data. - **Toast Capital.** Restaurant-focused; uses Toast POS data. - **Clover Capital (Fiserv).** Clover POS merchants. - **Shopify Capital.** E-commerce; Shopify Payments merchants. - **PayPal Working Capital.** PayPal merchants; receives split from PayPal sales. - **Worldpay / Fiserv / TSYS independent ISOs.** Third-party MCA funders integrate with these to split card sales for non-affiliated merchants. Examples: Forward Financing card-split product, several Toast-adjacent funders. **How card-split repayment works.** 1. Merchant continues running card sales through their existing POS. 2. Card processor splits each settlement batch — X% to funder, (100-X)% to merchant. 3. Funder receives daily split deposit; LMS records against deal balance. 4. Repayment continues until total repayment amount collected. 5. No NSFs — repayment scales with revenue. **Why card-split is structurally different.** - **No NSF risk.** Funder gets paid out of card-processor settlement before merchant sees money. - **Revenue-linked.** Slow week = slower repayment; aligns funder and merchant incentives. - **Lower defaults.** Processor-affiliated MCAs typically see 30–50% lower default rates than ACH-based MCAs. - **Limited to card-heavy verticals.** Restaurants, retail, salons; not for trucking, B2B services, contractors. - **Processor lock-in.** Merchant can't switch processors without paying off the advance. **Integration mechanics for non-affiliated funders.** - **Holdback agreement.** Three-party agreement among merchant, funder, and processor. - **Lockbox account.** Card-sale settlement deposited to escrow account funder controls. - **Direct processor API integration.** Worldpay, Fiserv, TSYS, North American Bancard support split-funding APIs. - **Setup fees** typical $500–$3K per processor per merchant. **Pricing benchmarks for non-affiliated card-split MCAs.** - **Factor rates** typically 1.15–1.35 (lower than ACH-based because lower default risk). - **Holdback percentage** typically 8–25% of card sales. - **Processor fees** add 0.10–0.40% MDR. **Why this matters for the broader MCA market.** - **Stripe / Square / Toast Capital products have unfair advantage.** They see real-time revenue, can underwrite in seconds, and have zero customer-acquisition cost. - **Independent MCA funders' card-split products fight back** by offering higher advances or lower factors than processor-affiliated products. - **Trend.** More processors launching MCA products through 2025–2026. **State considerations.** - **California, New York disclosure laws** apply to card-split MCAs the same as ACH. - **CT (June 2024 law)** specifically addresses split-funding disclosures. - **Merchant-facing communication.** Some states require processor disclosure of holdback to merchant. **Common pitfalls.** - **Mid-cycle processor switch.** Merchant switches to a new processor mid-advance — funder loses collection rail. - **Multi-processor merchants.** Funder splits one processor; merchant runs sales through another to avoid holdback. - **Reconciliation disputes.** Settlement vs. authorization timing. - **Chargeback drag.** Chargebacks reduce funder collections; treaty needed. **Common confusions.** First, "card-split is always cheaper for merchants." Often true on factor, but holdback can squeeze cash flow. Second, "card-split MCAs are loans." Same legal structure — sale of future receivables. Third, "only restaurants use card-split." False — retail, salons, e-commerce common. Fourth, "Stripe Capital is open to non-Stripe merchants." False — proprietary product. Fifth, "card processors are neutral." False — affiliated MCAs are profit centers for processors. As of 2026-06-29, Fundnode notes whether a funder offers card-split, ACH, or hybrid products, since collection mechanism predicts default rate and merchant cash-flow impact. ## Related terms - [MCA funder payment processing platforms](https://fundnode.co/llms/glossary/mca-funder-payment-processing-platforms) — MCA funders debit merchants via ACH processors — ACHWorks, Actum, Forte, REPAY, and Cross River Bank dominate; typical per-debit cost $0.18–$0.65 plus return-item fees of $3–$25. - [Merchant cash advance (MCA)](https://fundnode.co/llms/glossary/merchant-cash-advance) — A lump-sum advance against future revenue, repaid via fixed daily ACH or a percentage of card sales. Legally a sale of future receivables, not a loan. - [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 - [Stripe Capital — Embedded Financing](https://stripe.com/capital) - [Square Loans — Business Loans](https://squareup.com/us/en/loans) --- Source: https://fundnode.co/glossary/mca-funder-card-processor-integrations (HTML version) Document: MCA funder card processor integrations — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.