# Merchant Billing & Funding
This page provides an overview of Xplor Pay’s Merchant Billing and Funding options. These settings control when fees are deducted and when merchants receive payouts.
## About Merchant Billing and Funding
Billing calculates and deducts processing fees based on a merchant’s transactions. Funding (payout) settles card activity and transfers funds to the merchant’s bank account via ACH.
## Business challenges addressed
Merchant billing and funding help you:
* Support predictable cash flow for merchants.
* Reduce reconciliation effort by standardizing when fees are deducted.
* Provide flexible payout timing based on business needs.
* Improve visibility into net payouts and billed fees.
## Key capabilities
* Bill fees daily or monthly.
* Fund merchants on a next-day or two-day schedule.
* Submit batches before a nightly cutoff for timely settlement.
* Net fees from payouts (daily billing) or bill later (monthly billing).
## Billing Options
Billing controls when fees are deducted.
* **Daily billing.** Fees are deducted each day from processed activity.
* **Monthly billing.** Fees accumulate through the month and are billed at month-end.
## Funding (Payout) Options
Funding controls how quickly settled funds are paid out via ACH.
* **Next-day (early) funding.** Transactions settle on the next business day.
* **Two-day (standard) funding.** Transactions settle within two business days.
## Batch Cutoff Time
ACH transfers are processed overnight. Xplor Pay submits batches before the nightly cutoff to support the selected funding schedule.
{% hint style="warning" %}
To qualify for next-day funding, submit transactions by **11:00 p.m. Eastern Time**.
{% endhint %}
## Use cases
{% stepper %}
{% step %}
**Daily billing.**
Fees are netted from payouts as transactions are processed.
A merchant processes **$100.00** in sales. Total fees for the day are **$3.00**. The merchant receives **$97.00** in the next payout, based on the funding schedule.
{% endstep %}
{% step %}
**Monthly billing.**
Payouts are funded in full during the month. Fees are billed at month-end.
A merchant processes **$100.00** in sales. The full **$100.00** is paid out based on the funding schedule. The **$3.00** fee is deducted at the end of the month.
{% endstep %}
{% endstepper %}
## Technical Requirements
* An active Xplor Pay merchant account.
* A verified bank account for ACH payouts.
* Batches submitted before the cutoff time for next-day funding.
## Related topics
* To view billing, payout, and tax details, see [Financial Reporting](/getting-started/getting-started/our-products/financial-management/financial-reporting.md).
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