How Radius Global Solutions Processes Payments and What That Means for Your Business
What Radius Global Solutions Does and How It Fits Into Payment Processing
Radius Global Solutions is a payment processor and merchant services provider that handles credit card transactions, ACH transfers, and other payment methods for businesses. When you use Radius, they sit between your customer, your bank, and the card networks—they collect the transaction data, route it to the right place, and deposit the money into your account.
If you have a Radius account, you are paying them a fee (usually a percentage of each transaction plus a flat per-transaction charge) in exchange for the ability to accept cards and electronic payments. Understanding how their system works, what fees you are paying, and what happens when something goes wrong helps you manage your cash flow and spot billing errors.
Key Takeaways
- Radius processes card and ACH payments by routing transactions through card networks and banks, then depositing funds into your business account, usually within one to three business days.
- You pay Radius a combination of per-transaction fees (a percentage of the sale plus a flat fee) and sometimes monthly minimums or gateway fees, depending on your contract.
- Chargebacks happen when a customer disputes a charge with their bank; Radius will notify you and deduct the amount from your account while the dispute is investigated.
- Your Radius statement shows every transaction, fee, and chargeback, so reviewing it monthly helps you catch billing errors and understand where your money is going.
- If you want to leave Radius, you may owe an early termination fee depending on your contract length, so check your agreement before you switch providers.
How Money Moves Through a Radius Transaction
When a customer swipes a card or enters payment information at your business, Radius captures that data and sends it to the card network (Visa, Mastercard, Discover, or American Express). The network checks with the customer's bank to confirm the funds are available. If approved, the bank holds the money and sends a confirmation back through Radius to you.
Radius then deposits that money into your business bank account. The timing depends on your settlement schedule—most businesses see deposits within one to three business days, though some accounts settle daily and others weekly. The amount you receive is the sale price minus the Radius fee, which is deducted automatically before the deposit hits your account.
If you process ACH payments (bank-to-bank transfers), Radius handles those similarly: they collect the account and routing number, submit the transfer to the banking system, and notify you when the money clears. ACH typically takes three to five business days because it moves through a separate network than cards.
Understanding Radius Fees and What Appears on Your Statement
Radius charges you in layers. The most common structure is interchange-plus pricing: a percentage of each transaction (usually 1.5% to 3%, depending on card type and your contract) plus a flat per-transaction fee (often $0.20 to $0.30). A $100 credit card sale might cost you $2.50 to $3.50 in fees.
Beyond per-transaction fees, you may also pay a monthly gateway fee (if Radius hosts your payment page), a PCI compliance fee (for security certification), or a monthly minimum. Some contracts include a statement fee or batch fee. All of these appear on your Radius statement, usually itemized by date and transaction type.
Your statement is the only place you can verify what you are actually paying. If Radius promised you a certain rate in your contract but your statement shows a higher percentage, that is a billing error worth disputing. Keep your contract handy when you review statements so you can compare what you agreed to against what you are charged.
What Happens When a Customer Disputes a Charge
A chargeback occurs when a customer contacts their bank and says they did not authorize a charge or did not receive what they paid for. The bank pulls the money back from Radius, and Radius pulls it from your account. You lose both the sale amount and the original fee you paid to process it—and you also pay a chargeback fee (typically $15 to $100) to Radius for handling the dispute.
When Radius notifies you of a chargeback, you have a window (usually 7 to 10 days) to respond with evidence that the transaction was legitimate: a signed receipt, an email confirmation, proof of delivery, or a customer communication showing they authorized the charge. If you submit strong evidence, the bank may reverse the chargeback. If you do not respond or your evidence is weak, you lose the money permanently.
Chargebacks are part of card processing, but too many in a short period can raise your chargeback rate. If your rate climbs above 1% of your total transactions, Radius may charge you higher fees, require you to hold a reserve account, or terminate your account. Keeping detailed records of every transaction protects you if a dispute arises.
Reviewing Your Radius Account and Spotting Problems
Log into your Radius merchant portal regularly—at least monthly—to review your transactions and fees. The portal shows every sale, refund, chargeback, and fee in real time. Look for transactions you do not recognize, duplicate charges, or fees that do not match your contract.
Common billing errors include: a fee charged twice in one month, a higher percentage rate than your contract states, a monthly minimum you were not told about, or a chargeback fee applied to a transaction that should not have been disputed. If you spot an error, contact Radius support with the transaction ID and the date. Keep records of your complaint and their response.
If you process refunds, make sure Radius is handling them correctly. A refund should reverse the original transaction and return the fee you paid—so if you refunded a $100 sale that cost you $3 in fees, your account should be credited $103. Some processors refund only the sale amount and keep the fee, which is a loss you need to catch.
Ending Your Radius Account or Switching Providers
If you want to leave Radius, check your merchant agreement for an early termination fee. Many contracts lock you in for one to three years; leaving early can cost $300 to $1,000 or more. Some agreements have no early termination fee but require 30 to 60 days' notice.
Before you switch, make sure your new processor can handle your transaction volume and payment types. Ask the new processor what their fees are, what their settlement timeline is, and whether they charge a setup fee. Compare the total cost over a year, not just the per-transaction rate.
When you are ready to move, notify Radius in writing and ask for a final statement showing all transactions through your last day. Update your payment page or point-of-sale system to route to your new processor. Some businesses run both processors in parallel for a week to make sure the transition is smooth.
Frequently Asked Questions
How long does it take for money to show up in my bank account after a sale?
Most Radius accounts settle within one to three business days. Some accounts settle daily. Check your merchant portal or your contract to see your settlement schedule. Weekends and holidays delay deposits, so a Friday sale might not appear until Tuesday.
Why am I being charged a fee for a refund I issued?
Radius should refund both the sale amount and the fee you paid to process it. If they are only refunding the sale, contact their support team with the transaction ID and ask them to reverse the fee. This is a common error and usually corrected quickly once you report it.
What should I do if I see a chargeback I think is wrong?
Log into your Radius portal, find the chargeback notice, and submit evidence that the transaction was authorized and legitimate. Include a signed receipt, email confirmation, or proof of delivery. Submit this within the response window (usually 7 to 10 days) or you will lose the dispute automatically.
Can I negotiate my Radius fees?
Yes, especially if you process high volume or have been with them for years. Contact your Radius account manager and ask if they can lower your percentage rate or waive certain fees. Be prepared to show your transaction history and compare their rates to competitors.
What happens if I do not pay my Radius bill?
Radius will deduct unpaid fees from your next deposit. If you fall significantly behind, they may freeze your account and stop processing transactions until you pay. Check your statement each month to make sure you understand what you owe.