DEFINITION of Processing Date
A processing date is the date (month, day and year) when a merchant’s bank processes a credit or debit card transaction that has been authorized between a merchant and a customer. Processingis a broad term that describes the multi-step process of transferring funds from a customer to a merchant whenever a debit or credit card is involved in a transaction. Interbank clearing and settlement occur on the processing date.
BREAKING DOWN Processing Date
Credit card acceptance is the first step in a credit card transaction. The merchant accepts the physical card or the card number a customer provides online or by phone. Authorization and authentication are the next steps. An electronic system sends information about the transaction to the cardholder’s bank, called the issuing bank, to make sure the cardholder has enough money available to complete the purchase. The system also makes sure the card is valid and not lost, stolen, fake or expired. The transaction is then approved or declined.
Necessary StepsLeading to the ProcessingDate
At some point during the day, perhaps after the close of business, the merchant will electronically send all of its credit card transactions together in a batch to its bank, called the merchant bank or acquiring bank. The acquiring bank sends the details of all these transactions to a settlement bank, also called a processing bank. The settlement “bank” is usually a paymenttechnology company like MasterCard or Visa Inc.
For each transaction, the processing bank makes sure the right amount of money gets exchanged between the issuing bank (the consumer’s bank) and the acquiring bank (the merchant’s bank). This process is called “interbank clearing and settlement.” Interbankmeans that more than one bank is involved. The information-gathering step is called “clearing,” and the money-exchange step is called “settlement.” The whole process is automated and takes only seconds.
Next, for a purchase transaction, the settlement bank receives funds from the customer’s bank, then sends those funds to the acquirer (the opposite occurs if the merchant is issuing the customer a refund). The acquirer then transmits the funds to the merchant (or returns them to the customer), and the transaction is posted to the cardholder’s account.
The merchant pays various fees to accept credit cards from customers because of all the behind-the-scenes steps involved in processing the payments. The issuing bank –the customer’s credit card company –assumes the risk that the customer won’t pay for the transaction.
FAQs
The transcript also provides a processing date, estimating when your refund will be issued, often within 21 days of the cycle code date.
How long after the processing date will I get my refund? ›
If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in less than three weeks, even faster when you choose direct deposit.
Why does my return say processing? ›
If the tracker status on the WMR tool changes from the PATH refund status to the processing message, this is a sign that your tax return is on track to be approved for a refund and no discrepancies in your filed information have been detected.
Does still processing mean an audit? ›
Check up on your refund to see what's going on
If you see that your refund is being processed, it's a good sign. And even if you see that there's an issue with your tax return and you're being advised to call the IRS, don't panic.
What days does the IRS deposit refund 2024? ›
When will I receive my tax refund?
| If the IRS accepts your return by: | Direct deposit could be sent as early as: | Or your check could be mailed as early as: |
|---|
| March 25 | April 15 | April 22 |
| April 1 | April 22 | April 29 |
| April 8 | April 29 | May 6 |
| April 15 | May 6 | May 13 |
8 more rowsFeb 21, 2024
The 'as of' date on tax transcript 2022 represents the date on which your tax balance is calculated by the IRS, including your interest and penalties.
How many days will it take to get my refund after under processed? ›
Refund determined: If the return filed by the taxpayer is found to be accurate and has a refund claim, the refund will be issued to them. Typically, the refund process takes around 20-45 days after the e-verification of the income tax return.
How do I know when my refund is processed? ›
Use the IRS Where's My Refund tool or the IRS2Go mobile app to check your refund online. This is the fastest and easiest way to track your refund.
What does processing mean on IRS refund? ›
Return Received – The IRS has received your return and it's being processed. Refund Approved – They've processed your return and your refund has been approved. It will also provide an actual refund date. Refund Sent – Your refund has been sent to your bank for direct deposit or a paper check has been mailed.
Does processing mean approved? ›
Your status will indicate one of the following: Received means your return is being processed. Approved indicates your return has been accepted and your refund amount is approved. Sent confirms that your refund is being direct-deposited into your bank account or mailed to you as a check.
Refund processed means merchant has completed the process and the amount has been transferred to your payment source.
Does refund processed mean approved? ›
Refund has been processed means that they have approved and are ready to send you your refund. Your return being processed mean that your tax return is being processed. Your status should change from being processed to accepted and then a date given for your refund. Keep checking each day for that.
How do I know if my tax return has been flagged? ›
Taxpayers whose tax returns have been flagged for possible identity theft should receive one of the following letters: Letter 5071C, Potential Identity Theft during Original Processing with Online Option – Provides online and phone options and is issued most widely.
How long does it take the IRS to process a return? ›
(updated December 22, 2023) We issue most refunds in less than 21 calendar days. However, if you mailed your return and expect a refund, it could take four weeks or more to process your return. Where's My Refund?
How long can the IRS hold your refund for review? ›
If the IRS is reviewing your return, the review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.
What does transcript processing mean? ›
Processing means that the order is still with your school. If your order has been in this status for more than a couple of days, you should contact your school. Available means your order has been processed and the recipient has received an email with a link in it to access your document.
What does processed transcript mean? ›
Processed transcript: Gene/transcript that doesn't contain an open reading frame (ORF).
What does return due date or processing date whichever is later mean? ›
The first line is either when the return is received, or when it is due (roughly, it's always the 4/15 even though at times the due date is later like this year, 4/18) The second line is when your return was processed into the system.
Why do transcripts take so long to process? ›
The simple answer is that an official transcript is a legal document and hence the bureaucratic procedures that are implemented to get them to students favor making sure they are above suspicion rather than expediency.
