# MCA funder payment restart process (typical 2026) > Payment restart after a hold or reconciliation typically follows an automatic schedule with 24-hour pre-notification, bank-account re-verification, and optional grace-period extensions of 1-3 days for documented inability to resume. Payment restart is the operational counterpart to payment hold and reconciliation — the moment a merchant's daily ACH resumes after a pause or after a reduced-payment window ends. In 2026, restart processes have become standardized across mid-market and top-tier funders to reduce surprise NSFs and merchant disputes. **Restart trigger scenarios.** 1. **Hold expiration** — pause window ends, debits resume at original amount. 2. **Reconciliation expiration** — reduced-payment window ends, debits resume at original amount. 3. **Cure period after NSF** — merchant clears NSF returns, funder restarts debits. 4. **New bank account verification** — merchant changed accounts mid-term; debits restart from new account. 5. **Post-renewal restart** — renewal converts to new daily amount; old debit schedule ends, new one begins. **Standard automatic restart workflow.** 1. **Restart date set at hold/reconciliation approval** — both parties know the date. 2. **24-hour pre-notification** — email and portal alert: "Daily ACH debits resume tomorrow at $361.11 against account ending 4521." 3. **Optional 48-hour pre-notification at top-tier funders** for amounts >$500/day. 4. **Bank account re-verification** (optional) — funder may run a $1 ACH test debit 1–2 days before restart to confirm account is active. 5. **First debit hits on restart date** — same time as original schedule (typically morning ACH window). 6. **NSF protection grace period** at some funders — first restart NSF doesn't trigger default if cured within 1 business day. **Grace-period extension requests.** If merchant cannot resume on the scheduled date: - Request must be submitted 24+ hours before restart. - Documented reason required (revenue still down, equipment not yet repaired, etc.). - Funder may grant 1–3 additional days OR convert to formal reconciliation. - Extension typically counts as a new hold and may incur additional fee. **Bank account change at restart.** - If merchant wants to restart from a different account, must submit: - Voided check from new account, OR - Plaid verification of new account. - Funder runs identity match (account holder name must match merchant or authorized signer). - $1 test debit confirms account is debit-enabled. - New ACH authorization signed via DocuSign or similar. - Process typically takes 1–3 business days — restart delayed accordingly. **Restart failure modes.** - **NSF on first restart debit** — most common failure. Funder retries next business day; second NSF triggers escalation. - **Account closed** — bank returns "account closed" code. Funder freezes activity, contacts merchant. - **Stop payment instructed by merchant** — triggers default immediately. - **Merchant disputes the debit** as unauthorized — funder produces signed ACH authorization to resolve. **Restart at original amount vs. modified amount.** - After hold: restart at original amount. - After reconciliation: restart at original amount (the reduction was temporary). - After permanent amount change (rare): restart at new permanent amount. - After renewal: restart at new renewal amount (old advance is paid off). **Restart communication best practices (2026 industry standard).** - 48 hours before: email reminder with amount, account, date. - 24 hours before: portal notification. - Day of: ACH originated, no additional alert. - Day after: payment confirmation email. **ISO involvement.** - ISOs receive restart notification on their merchants' deals. - ISOs typically reach out to merchants 48 hours before restart to confirm readiness. - Top ISOs operate a "restart concierge" workflow that prevents most NSF surprises. **Restart timing nuances.** - Restart on Monday: most common (matches original weekly cadence). - Restart on first business day after hold ends: at some funders. - Restart skipping weekends/holidays: universal — ACH does not run on those days. - Same-day restart not possible — ACH origination window closes 2pm ET. **What merchants commonly misunderstand.** - "I thought the hold extended the entire payment schedule" — partially true; term extends but daily amount returns to original. - "Reconciliation lowered my payment forever" — no, only for the approved window. - "I expected another reminder on the day of restart" — typically no, restart proceeds silently. **Compliance dimension.** - Restart notifications form part of the regulatory disclosure trail in CA/NY/UT/VA/GA. - Sudden unannounced restart that causes NSF can be cited in enforcement actions as deceptive practice. - Documentation of pre-notification is retained 7+ years. **Restart fee structures.** - Typically no fee for automatic restart after hold/reconciliation. - $50–$150 fee for "manual restart" (e.g., after default cure). - $25–$50 fee for new bank account setup. **Restart after default cure.** - Merchant clears all overdue amounts + late fees. - Funder may require additional bank statements showing revenue stability. - Restart often at slightly reduced daily amount to ease back into schedule (negotiated case-by-case). - Default flag may remain on file even after cure — affects renewal eligibility. **Modern trends 2026.** - Automated $1 test debits before restart at most top-tier funders. - AI-driven restart-readiness prediction (analyzing connected bank data to flag likely NSF). - Standardized restart notification template across the industry. - Integration with merchant calendar / accounting software for pre-restart cash-flow alerts. **Restart vs. early payoff.** - Restart resumes the original schedule until factor is fully repaid. - Early payoff: merchant pays remaining factor in lump sum and ends the deal. Generally no factor discount (full factor owed). **Takeaway.** MCA funder payment restart in 2026 follows a standardized automatic workflow — 24-hour pre-notification, optional bank-account re-verification, first debit on the scheduled date at the original daily amount (or new amount post-renewal), with grace-period extensions available for documented inability to resume — operationally critical because unannounced restarts that cause NSFs can be cited in CA/NY/UT/VA/GA enforcement actions, and increasingly automated through $1 test debits and AI-driven restart-readiness prediction across mid-market and top-tier funders. ## Related terms - [MCA funder payment modification rules (typical 2026)](https://fundnode.co/llms/glossary/mca-funder-payment-modification-rules) — Payment modifications (reconciliation, pause, restart, amount change) are typically granted by MCA funders 1-3 times per term based on bank-statement-verified revenue decline, with reductions of 20-50% for 30-90 days as the standard pattern. - [MCA funder payment hold rules (typical 2026)](https://fundnode.co/llms/glossary/mca-funder-payment-hold-rules-typical) — Payment holds at MCA funders are typically granted for 3-10 business days for documented emergencies (equipment failure, natural disaster, bank issue), with a $50-200 administrative fee, no extension of total cost, and limited to 1-2 holds per term. - [MCA funder stop payment rules (typical 2026)](https://fundnode.co/llms/glossary/mca-funder-stop-payment-rules-typical) — Stop payment by a merchant against an MCA daily ACH is typically a contractual default triggering immediate acceleration of the full remaining balance, COJ filing (in states that allow it), UCC enforcement, and personal-guarantee pursuit. - [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. --- Source: https://fundnode.co/glossary/mca-funder-payment-restart-typical-process (HTML version) Document: MCA funder payment restart process (typical 2026) — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.