To understand what actually split withholding process is, one should know the entire process of merchant cash advance first.
Merchant cash advances are usually used by retail businesses, by using credit or debit cards as they do not qualify for regular bank loans. But merchant cash advance is actually more expensive than a bank loan.
The credit card processing company splits the credit card sales between the business and the finance company. This splitting is done on the basis of the proportion that was fixed earlier. It varies between 10% to 22%. This process is known as split withholding process.
This is the most preferred method of collecting the funds both for the clients as well as the finance companies. It is considered to be the smoothest and seamless process of transaction.