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How Does an MCA Holdback Work?

The holdback is the fixed percentage of your daily card sales or bank deposits that goes to the MCA provider until the full payback amount is collected. Typical holdbacks range from 8% to 20%. If you average $2,000 a day in sales with a 10% holdback, about $200 per day goes toward the advance.

Last updated October 23, 2026

Split funding vs ACH

With split funding, your card processor sends the holdback directly to the provider. With ACH, the provider debits a fixed daily or weekly amount from your bank account.

Reconciliation

Many agreements allow you to request reconciliation if your revenue falls, adjusting payments to match the agreed percentage of actual receipts.

Frequently asked questions

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