What Is Gross Funding in Card Processing?

Gross funding answers a simple question: does your bank deposit match your sales, or your sales minus fees? The answer changes how you read your statement and how you plan cash.

What is gross funding?

Gross funding means the processor pays you the full amount of your card sales and collects its fees separately, usually once a month. Banks and processors also call it gross settlement, monthly billing or monthly discount.

Chase describes it plainly: "With monthly billing, you get the full amount from your daily credit card payments, and we hold back all processing fees until the end of the month." Chase adds that this "makes it easier to match your sales and deposits each day," lists "The monthly billing fee is 0.03%," and lets merchants switch to daily billing for free.1Chase for Business, Statements and fees: What is the monthly billing fee? (read October 14, 2026)

The opposite is net funding, often called daily discount or daily billing. Fees come out of each batch before the money reaches your bank payout. Some processors mix the two. Paysafe's daily method takes only the qualified rate out of each deposit, and other fees "are deducted in one lump sum at the beginning of the following month."5Paysafe Help Center, What is a discount rate? (read October 14, 2026)

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Gross funding vs net funding

Illustrative example. A store sells $10,000 by card on one day. Assume $290 in processing fees for that day (an illustrative figure, not a quoted rate). With gross funding, $10,000 lands in the bank, and the $290 joins the fee debit at month end. With net funding, $9,710 lands in the bank. Over the month, the fees paid are the same.

What processors actually do

Big online processors usually pay net. Stripe's documentation says "The charged amount, less any Stripe fees, is initially reflected on the pending balance."2Stripe Docs, Understanding Connect account balances (read October 14, 2026) Stripe does not document a gross option on that page.

Adyen also deducts fees from settlement batches during the month, then sends a monthly invoice with "a full specification of the costs of payment processing." Any gap between the invoice and the deductions is credited or debited "to the next settlement batch."3Adyen Docs, Payment processing invoice (read October 14, 2026) The invoice balance can be paid from settlement, by bank transfer, or by direct debit, which Adyen supports only for bank accounts in the EU, UK and US.4Adyen Help, How do I pay my invoice? (read October 14, 2026)

Matching deposits to sales is the core of reconciliation, and the timing of each deposit comes from settlement. For a line-by-line walkthrough, see how to read a merchant statement. For the banking meaning of "gross settlement," see real-time gross settlement.