What is float in payments? Money in transit explained
By SendPay Business · · 2 min read
- 1Pick who to pay and type the amount
- 2Tap send and it is on its way
- 3It lands in their account
Float is money that has left one place but hasn't reached the next yet. For a moment it is in transit: gone from the payer's account, but not yet usable by the person being paid.
Where float comes from
Tap to explore
Tap each one to see what it means.
Cheques
the time between a cheque being written and the money clearing.
Card payments
the gap between a sale and the merchant being paid out.
Transfers
payments sent by slower systems, such as Bacs, which takes about three working days.
Prepaid balances
money customers load in advance and spend later.
Who holds it
While money is in transit, it sits with a bank, card processor or payment firm. In the past, banks could earn interest on float, which is one reason slow payments lasted so long. Payment and e-money firms in the UK must safeguard customer money while they hold it.
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Colour
What it does
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Why float is shrinking
Instant systems like Faster Payments in the UK and SEPA Instant in Europe move money in seconds, leaving little or no float. That is good for customers and businesses, who get their money sooner, and it is why many people now expect every payment to be instant.
Where SendPay fits
SendPay platforms give your customers GBP, EUR and USD accounts, transfers, payment links and branded Visa cards under your own brand, powered by licensed partners.
How it works
Your own money app- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
Why sign up
Create your free SendPay account
It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
How much of my money is stuck in transit?
Enter what you take a month and how many days it takes to arrive, and the free calculator shows your float and what it costs you a year.
Payment float calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.