How New and Company Payment Processing Works
What New and Company Payment Does
New and Company is a payment processor that moves money between merchants and their customers' bank accounts or cards. The company sits between a business and the financial system—it collects payment information from a customer, verifies the funds exist, and deposits the money into the merchant's account. It does not lend money, hold customer funds long-term, or make decisions about who can use the service; it processes the transaction itself.
The company handles both card payments (credit and debit) and bank account transfers (ACH). A merchant signs up, integrates New and Company's system into their website or point-of-sale terminal, and then customers can pay. New and Company charges a fee per transaction—usually a percentage of the sale plus a flat amount per transaction, though the exact rate depends on the merchant's industry, sales volume, and contract terms.
Key Takeaways
- New and Company connects a merchant's business to the banking system, taking payment information from customers and depositing funds into the merchant's account.
- The processor charges a fee on each transaction, typically a percentage plus a per-transaction flat fee, and the rate varies by industry and merchant agreement.
- Funds usually deposit within one to three business days, though some merchants can receive same-day or next-day settlement for a higher fee.
- If a customer disputes a charge or a card is fraudulent, New and Company handles the chargeback process, which can reverse the deposit and charge the merchant a fee.
- Merchants must follow PCI compliance rules (data security standards) to use any payment processor, including New and Company.
How Money Moves From Customer to Merchant
When a customer enters their card or bank account information at checkout, New and Company's system captures that data and sends it to the customer's bank or card network for approval. The bank checks whether the account has sufficient funds and whether the transaction looks legitimate. If approved, the bank holds the money and tells New and Company the payment went through.
New and Company then deducts its fee and deposits the remaining amount into the merchant's business bank account. This deposit does not happen instantly. Most merchants receive funds within one to three business days—the exact timing depends on when the merchant's bank processes the deposit and whether the transaction settled during a weekend or holiday. Some merchants can pay for faster settlement (same-day or next-day), but this costs extra and is not available for all transaction types.
Understanding Processor Fees and Costs
New and Company makes money by charging merchants a fee on each transaction. The fee structure typically includes two parts: a percentage of the sale (usually between 1.5% and 3.5%, depending on the industry and risk level) and a flat per-transaction fee (often $0.20 to $0.30 per transaction). A merchant selling a $100 item might pay $2.99 to $3.50 in fees, meaning the merchant receives $96.50 to $97.01.
The exact rate a merchant pays depends on several factors: the type of business (restaurants and nonprofits often pay different rates than retail), the sales volume (higher volume can mean lower rates), the payment method (card-not-present transactions often cost more than in-person card swipes), and the merchant's contract terms. A merchant should ask New and Company for a written fee schedule before signing up, so there are no surprises.
Beyond per-transaction fees, merchants may also pay monthly fees for account maintenance, fees for chargebacks or disputes, fees for PCI compliance services, and fees if they want faster settlement. These should all be listed in the merchant agreement.
What Happens When a Customer Disputes a Charge
If a customer calls their bank and says they did not recognize a charge, or if a card was stolen and used fraudulently, the bank opens a chargeback. The bank reverses the charge, takes the money back from New and Company, and New and Company takes it back from the merchant's account. The merchant loses both the sale and the payment processing fee, and also pays a chargeback fee (usually $15 to $100 per dispute, depending on the processor).
The merchant has the right to fight the chargeback by providing evidence that the transaction was legitimate—a signed receipt, proof of delivery, email confirmation from the customer, or other documentation. New and Company does not decide whether the merchant wins; the card network (Visa, Mastercard, American Express) or the customer's bank makes that decision. If the merchant wins, the money goes back into their account and the chargeback fee is usually refunded. If the merchant loses, the chargeback stands and the fee stays.
Merchants with too many chargebacks can be flagged as high-risk, which can raise their fees or get their account closed. This is why merchants should keep records of every transaction and respond quickly to disputes.
PCI Compliance and Data Security Requirements
PCI compliance refers to a set of security standards that any business accepting card payments must follow. These standards are set by the major card networks (Visa, Mastercard, American Express, Discover) and enforced by payment processors like New and Company. The rules exist to protect customer payment information from theft and fraud.
The specific requirements depend on how many transactions a merchant processes per year, but they generally include: using a secure, encrypted connection when collecting payment data; not storing full card numbers on the merchant's own computer; keeping software and systems updated with security patches; using strong passwords; and monitoring for suspicious activity. A merchant who does not follow these rules can be fined by the card networks or have their processing account closed.
New and Company typically provides tools and guidance to help merchants stay compliant, and may offer PCI compliance services for an additional fee. A merchant should ask what compliance support is included in their account.
Settlement Timing and Account Holds
Most merchants receive their deposited funds within one to three business days. This delay exists because the banking system itself takes time to move money between institutions, and because the processor and the merchant's bank both need to verify that the transaction is legitimate before releasing the funds.
Some merchants experience account holds, where New and Company or the merchant's bank temporarily holds a portion of deposits as a reserve. This happens when a merchant is new, has a high chargeback rate, operates in a high-risk industry, or has a history of disputes. The hold is meant to protect the processor and the bank in case chargebacks come in later. A merchant can ask New and Company or their bank why a hold is in place and what steps they can take to have it removed.
Comparing New and Company to Other Processors
New and Company is one of many payment processors in the market. Other well-known processors include Stripe, Square, PayPal, Authorize.net, and Worldpay. The main differences between processors are the fee structure, settlement speed, customer support quality, which payment methods they accept, and what tools they provide for reporting and fraud prevention.
A merchant should compare at least two or three processors before choosing one. The cheapest processor is not always the best—a processor with slightly higher fees but faster settlement or better customer support might save money in the long run. A merchant should also check whether the processor works with their point-of-sale system or e-commerce platform, because some processors integrate more smoothly with certain tools than others.
Frequently Asked Questions
How long does it take to get paid after a customer swipes their card?
The transaction is approved instantly, but the money does not appear in the merchant's bank account for one to three business days. This delay is normal and happens because the banking system needs time to move money between institutions. Some processors offer same-day or next-day settlement for an extra fee.
What if a customer claims they never received their order?
If the customer disputes the charge with their bank, New and Company will notify the merchant and ask for proof of delivery or shipment. The merchant should provide tracking information, a signed delivery receipt, or email confirmation from the customer. The card network or bank decides whether the merchant wins the dispute.
Can a merchant switch processors if they are unhappy with New and Company?
Yes. A merchant should check their contract for any early termination fees or notice requirements, but most processors allow merchants to leave. The merchant will need to set up a new processor account, update their point-of-sale system or website, and notify customers of any changes to how they pay.
What does PCI compliance actually require a merchant to do?
The exact requirements depend on transaction volume, but generally include: using encrypted connections for payment data, not storing full card numbers, keeping software updated, using strong passwords, and monitoring for fraud. New and Company can provide specific guidance for the merchant's business type.
Why did my account get flagged as high-risk?
High-risk flags usually result from a high chargeback rate, a new merchant account, or operating in an industry the processor considers risky (like travel or subscription services). A merchant can ask New and Company why they were flagged and what they can do to lower their risk rating.