COB vs. EOD: What Each Means & How to Use Them

As an ecommerce merchant, taking payments from your customers is essential to your success. However, there can be confusion over terms such as COB and EOD. COB stands for “close of business” while EOD stands for “end of day.” Both terms refer to a deadline for payment processing, but the specifics can vary depending on the payment processor, business, and location.

What does COB mean?

COB is the term for the end of the business day, which may vary depending on the region, time zone, and company. For example, a business in New York may have a COB of 5:00 PM Eastern Time, while a business in Los Angeles may have a COB of 5:00 PM Pacific Time. Payments should be processed by the COB deadline to ensure they are credited to the proper accounts in a timely manner.

What does EOD mean?

EOD is a term that is often used interchangeably with COB, but there are differences in the interpretation of the two terms. EOD may refer to the deadline for payment processing, but it can also refer to the end of the banking day. In some cases, the banking day may end earlier than the business day, which can impact payment processing times. Merchants should check with their payment processor or bank to ensure they understand the specific EOD deadlines for payments.

What are Business Days?

Business days refer to the days of the week that a business is open and operational for processing payments. Typically, business days are Monday through Friday, although some businesses may be open on Saturdays as well. Business days may also exclude public holidays, which can impact payment processing times. It’s important for ecommerce merchants to clarify their payment processing deadlines and notify customers of any potential delays due to holidays.

Is Saturday considered a business day?

Saturday is typically not considered a business day for banking purposes, although some banks and payment processors may allow for limited processing on Saturdays. Merchants should check with their payment processor to determine if Saturday processing is available and if there are any additional fees or requirements. However, it’s important for ecommerce businesses to communicate with customers about any potential delays in payment processing when weekends or holidays occur.

In conclusion, understanding payment processing terms such as COB and EOD can help ecommerce merchants streamline their payment processes and improve customer satisfaction. By knowing when payments are due and when they will be credited to accounts, merchants can more effectively manage their cash flow and finances.