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When are invoice deposits transferred to bank account?

I do a lot of commissions and collect a deposit. I just started using the feature where you break the invoice into deposit and balance, but I don't see where the deposit amount was transferred to my bank account. Is the deposit held until the full payment is collected?

If yes, a follow-up question: What if the client chooses to pay the balance by check? Must the deposit be manually transferred?

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Square Community Moderator

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Hi there, @VA_artist 👋 Welcome here to the Seller Community! Thanks for joining us here and asking your question about Invoices. It's a good one!

 

Deposits made on outstanding Invoices will show up in your Square Balance immediately after payment, and will then Transfer over to your bank account via our normal Deposit Schedule. In other words, your Invoice will not need to be fully paid in order to receive a Deposit payment into your bank account. 

 

Concerning your follow-up question: If a client chooses to pay the balance by check, you can then record that payment as a Recorded Payment and select the specific payment type associated with the deposit. It's important to note that recorded payments such as cash or check will not come over to your bank account via Transfer, since those funds are given outside of Square.

 

I hope this information is helpful! Please let me know if you have any clarifying questions. We are here to help! 

 

 

Joe
Community Moderator, Square
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Square Community Moderator

Best Answer

Hi there, @VA_artist 👋 Welcome here to the Seller Community! Thanks for joining us here and asking your question about Invoices. It's a good one!

 

Deposits made on outstanding Invoices will show up in your Square Balance immediately after payment, and will then Transfer over to your bank account via our normal Deposit Schedule. In other words, your Invoice will not need to be fully paid in order to receive a Deposit payment into your bank account. 

 

Concerning your follow-up question: If a client chooses to pay the balance by check, you can then record that payment as a Recorded Payment and select the specific payment type associated with the deposit. It's important to note that recorded payments such as cash or check will not come over to your bank account via Transfer, since those funds are given outside of Square.

 

I hope this information is helpful! Please let me know if you have any clarifying questions. We are here to help! 

 

 

Joe
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
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Thank you for the info!

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Of course! Let us know if anything else comes up 😇

Joe
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If you have a Square Bank account the transfer settings especially, Set a Close of Day Time are no longer available?

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Hi @baum,

 

Are your transfer settings set to Automatic or Manual transfers? 

 

When manual transfers are enabled you choose when to transfer funds to your bank account, while with automatic transfers, the close of day determines when your funds are sent to your bank account. If you've currently set your transfers to manual, that would be why you're not seeing these settings.  

 

I hope this helps, please let me know if you have any other questions 🙂

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I do not have any options to update the transfer (manual or automatic). The option is not there. I need the auto feature.

 

Please help me.

 

 

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You might be in the wrong section of your Dashboard, @baum - change your transfer settings here or by visiting Account & Settings > Business Information > Transfers. This is what the two options look like:

 

Manual Transfers, which do not have the close of business section: 

 

And once you've enabled automatic transfers:

 

Please let me know how you go!

 

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This is great info on taking deposits! But what about reporting on the sales side? i am not seeing a paid deposit listed as a part of the days sales? Does that system wait until the full amount is paid to realize the deposit and final payment as total sales for that invoice? Or should i be seeing the piad deposit as part of sales for the day the deposit was paid?

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Square Community Moderator

Hey @chefnewton I am happy to step in and hopefully provide some clarification on invoice deposits. When your customer makes a deposit payment or a progress payment on an invoice, those funds will be deposited to your account but that money won’t appear on your transactions report until the invoice is paid in full. Does that help answer your question? If not please reach back out with more details on what you are tying to accomplish. 

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