---
updatedAt: 2025-12-04T20:53:28.000Z
---
Fetch the complete documentation index at: https://docs.rainforestpay.com/llms.txt. Use this file to discover all available pages before exploring further. Append .md to any documentation page URL to get its markdown version.
# Understanding deposits
Understanding deposits in the Rainforest ecosystem
In the Rainforest ecosystem, a Deposit is the movement of funds *to* or *from* a Merchant. The merchant provides where they want their funds to be deposited to in [merchant onboarding](https://docs.rainforestpay.com/docs/understanding-onboarding).
A merchant will receive a deposit on each US banking day, consisting of all payments (card, ACH, refunds, chargebacks, ACH returns, etc.) that are available for deposits. [Deposit timing](https://docs.rainforestpay.com/docs/deposit-timing-for-payments) is dependent on the payment method type and merchant configuration.
# Money movement
***
When Rainforest processes a payment from a user, the [billing fees](https://docs.rainforestpay.com/docs/merchant-billing-profiles) are deducted from the merchant's daily funding deposit and added to the platform's residuals. Fees on payments are determined by the billing profile assigned to the merchant. The platform's residuals will be deposited to the platform at the beginning of the next month.
# Statement descriptors
***
Deposits are sent to merchants and platforms. Merchants will receive daily funding deposits and separate billing deposits if on [gross billing](https://docs.rainforestpay.com/docs/gross-billing). Platforms may receive a funding deposit for Platform Fees if utilizing [platform amount splits](https://docs.rainforestpay.com/docs/platform-amount-splits) and billing deposits for Residuals.
These deposits will appear on the merchant or platform's bank account statement with the following syntax:
| Type | Statement Descriptor | Example |
| :----------------------- | :------------------------------------------ | :-------------------- |
| Platform Funding Deposit | RAINFOREST \{8 alpha-numeric value}-a | RAINFOREST hC8c411H-a |
| Platform Billing Deposit | RAINFOREST \{8 alpha-numeric value}-R | RAINFOREST wEI8uhNz-R |
| Merchant Funding Deposit | \{Platform Name} \{8 alpha-numeric value}-d | PLATFORM g8CSfJeD-d |
| Merchant Billing Deposit | \{Platform Name} \{8 alpha-numeric value}-b | PLATFORM HxFpaFqK-b |
# Deposit frequency
***
By default, merchant deposits are configured to deposit daily. With Rainforest approval, deposits can be configured to deposit weekly or monthly.
The deposit frequency schedules are:
* Daily - deposits processed on each US banking day
* Weekly - deposits processed on the first US banking day of the week
* Monthly - deposits processed on the first US banking day of the month
### Create merchants
If your platform is configured to allow for multiple deposit frequencies, then your platform will have a default deposit frequency that will be assigned to merchants on creation. The default can be overridden by setting the deposit frequency on the [Create merchant](https://docs.rainforestpay.com/reference/create_merchant) endpoint.
### Update merchants
For **Active** merchants, the deposit frequency can be updated by setting the new deposit frequency on the [Update merchant](https://docs.rainforestpay.com/reference/update_merchant) endpoint. When updating a merchant's deposit frequency, all payments that have not been deposited yet will now respect the the new deposit frequency.
For example, if a merchant is on Daily deposits and a card payment is processed on November 24th with a deposit timing of T+1. The merchant's deposit frequency is then updated to Monthly on November 24th after the card payment processed. The next deposit the merchant will receive will be on December 1st and will include the card payment processed on November 24th.
# Statuses
***
The deposit `status` is the descriptor of the current status in the life cycle of the deposit.
| Status | Description |
| :----------- | :----------------------------------------------------------------------------- |
| `PROCESSING` | Deposit is processing and funds have been initiated. |
| `IN_REVIEW` | Deposit has been flagged for risk review. |
| `SUCCEEDED` | Deposit has completed processing and the funds were deposited to the merchant. |
| `FAILED` | Deposit unsuccessfully attempted to process. |
# Sandbox simulation
***
In Production, deposits are automatically processed for your merchants. Deposits will include payments that are ready to be released to your merchant based on [deposit timing](https://docs.rainforestpay.com/docs/deposit-timing-for-payments) per payment type. In the Sandbox environment, payments and deposits do not move on an automatic schedule, which allows you to have more control over testing.
In Sandbox, you can simulate the processing of a merchant deposit via the [simulate merchant deposit](https://docs.rainforestpay.com/reference/simulate_merchant_deposit) endpoint. Simulating a deposit will do the following:
1. Transition all the merchant's payments with the status of `Processing` to `Succeeded`.
2. Create a deposit with the status of `Processing`.
Once the payments are in the `Succeeded` status, actions such as [refunding](https://docs.rainforestpay.com/docs/cancel-or-refund-a-payin#refund-a-payin) can be taken on the payins.
You can also simulate the deposit status change from `Processing` to `Succeeded` via the [simulate deposit status change](https://docs.rainforestpay.com/reference/simulate_deposit_status) endpoint. This will allow you to test all webhooks for payments and deposits that you will receive in Production.