Understand 7shifts Tip Payout Times

This article explains different scenarios for float payout times, ensuring your funds are available as soon as possible. It's important to remember that business days are the only days considered for clearing, excluding weekends and holidays.

General Guidelines

• When we mention "x business days" it refers to the time it takes for funds to be processed and added back to your account after a payout.
• The first initial float takes 5 business days to appear in the Account.
• Weekends and banking holidays are excluded from this period.
• The exact clearance time can vary depending on the time and day you initiate the float.

Below are four common scenarios for 5-day float clearing:

Scenario #1: Normal Float Top-Up (5-Day Clear)

In this scenario, a float is posted before the daily cutoff (midnight UTC) for the bank to process the next day. Timeline:

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  • Monday (Day 1): Admin runs payroll before 5:00 PM PST
  • Tuesday (Day 2): Processing continues.
  • Wednesday (Day 3): Processing continues.
  • Thursday (Day 4): Processing continues.
  • Friday: Funds are available to use.

Scenario #2: Late Day Float Top-Up (5-Day Clear)

This scenario covers a late float top-up where the float is posted after the daily cutoff (midnight UTC). The transaction will be lumped in with those of the next day. Timeline:

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  • Thursday: Admin runs payroll before 5:00 PM PST
  • Friday: Float top-up starts processing the following day.
  • Saturday-Sunday: No bank processing on weekends.
  • Monday (Day 1): Processing begins.
  • Tuesday (Day 2): Processing continues.
  • Wednesday (Day 3): Processing continues.
  • Thursday (Day 4): Processing continues.
  • Friday (Day 5): Processing continues.
  • Monday: Funds are available to spend.

Scenario #3: Weekend Sign-Up (5-Day Clear)

Weekend float top-ups are posted at 7:00 PM UTC the next business day (Monday, unless Monday is a bank holiday). Timeline:

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  • Saturday-Sunday: Admin/Manager initiates float top-up.
  • Monday: Float top-up is posted at 7:00 PM UTC and starts processing.
  • Tuesday (Day 1): Processing begins.
  • Wednesday (Day 2): Processing continues.
  • Thursday (Day 3): Processing continues.
  • Friday (Day 4): Processing continues.
  • Monday (Day 5): Processing continues.
  • Tuesday: Funds are available to spend.

Scenario #4: Holiday Week Signup (5-Day Clear)

In this scenario, a float is posted before a banking holiday. The float will take an extra day to clear due to the holiday. Timeline:

•  
  • Thursday: 7:00 PM UTC initiates float top-up before daily cutoff.
  • Friday (Day 1): Float top-up is received and starts processing.
  • Saturday-Sunday: No bank processing on weekends.
  • Monday (Day 2): Processing continues.
  • Tuesday (Day 3): Bank holiday, no processing.
  • Wednesday (Day 4): Processing continues.
  • Thursday (Day 5): Processing continues.
  • Friday: Funds are available to spend.

Let's break it down with two examples for 2-day:

Scenario 1: Payout During Banking Hours (2-day Clearance)

Imagine you request a payout of $4000 on a Tuesday night during banking hours. Typically, you’d expect to see $4000 added back to your account by Friday. Here’s how it works:

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  • Tuesday night: Payout request made.
  • Wednesday: First business day.
  • Thursday: Second business day.
  • Friday: Funds appear in your account.

Scenario 2: Payout Outside Banking Hours (2-day Clearance)

If you make the same $4000 payout on a Wednesday night outside of banking hours, it won’t be processed until Thursday morning. This means:

•  
  • Wednesday night: Payout request made.
  • Thursday: First business day.
  • Friday: Second business day.
  • Monday: Funds appear in your account.

Why Delays Can Happen

Delays are common when payouts are split. For instance, if you paid out $2000 on Tuesday and another $2000 on Thursday, you’d see:

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  • $2000 returned to your account by Friday: First payout.
  • Remaining $2000 by Monday: Second payout.

This delay stems from the time gap between two full business days and if the payout was submitted outside banking hours.