Follow the $100.
Check every step.

The claims and their sources

1. Approval ≠ payout

   00:33 · EP01-C01

   Authorization is the issuer’s approval response; a merchant payout need not have arrived when approval appears.

   Visa Developer ↗

2. Acquirer / network / issuer

   00:39 · EP01-C02

   A Visa-style purchase involves the merchant/acquirer, network and issuing bank. The cardholder repays the issuer.

   Visa merchant explanation (Canada; structural roles only) ↗

3. Authorization → clearing → settlement

   01:08 · EP01-C03

   For the illustrated process, submission/capture enables clearing and settlement after authorization. Other payment configurations can differ.

   Visa Developer ↗

4. No single payout deadline

   01:23 · EP01-C04

   Merchant access to funds depends on the payout arrangement. Square offers differing transfer/access options; this is not a universal timing promise.

   Square Transfers ↗

5. Pending / posted

   01:35 · EP01-C05

   A pending authorization can hold available credit; the final amount may change, including for a tip. Pending status is not proof of merchant funds availability.

   Capital One Help Center ↗

6. 2.6% + $0.15

   02:09 · EP01-C06

   The example uses Square Free, U.S. tap/dip/swipe pricing for a domestic-issued card, with no additional fees. Rechecked November 1, 2026. Other plans and payment types differ.

   Square Support ↗

7. $2.75 fee / $97.25 remainder

   02:19 · EP01-C07

   Our arithmetic on that $100 example gives $2.60 plus $0.15 in fees and $97.25 left for the merchant before other costs. Penny still owes the modeled $100 purchase.

   Cash Splained calculation from Square pricing ↗

8. Exact split not established

   02:44 · EP01-C08

   Interchange is one component of merchant pricing and generally flows from acquirer to issuer. Published Square pricing does not establish its private issuer/network/provider split.

   Mastercard ↗

9. Statement snapshot

   03:11 · EP01-C09

   Statement balance is the amount at billing-cycle close; subsequent activity can change current balance. The modeled statement has only one $100 charge and no other activity.

   Capital One ↗

10. $25 paid → $75 remains, in our example

    03:33 · EP01-C10

    Minimum payment and full statement balance are different amounts. Paying the minimum does not itself guarantee no interest. The $25 minimum is invented for teaching, not an issuer quote.

    Chase; grace conditions separately supported by CFPB ↗

11. Eligible grace + full timely payment

    03:57 · EP01-C11

    Purchase grace is conditional. The example assumes an eligible account on a card offering it, with full statement balance paid by the due date.

    CFPB ↗

12. No guaranteed immediate grace reset

    04:29 · EP01-C12

    Not paying in full can remove purchase grace; new purchases may then accrue interest from purchase dates. Restoration and cash-advance treatment require the actual terms.

    CFPB ↗

13. 25% hypothetical APR

    04:51 · EP01-C13

    APR expands to annual percentage rate. The 25% shown is a made-up example, not a current average or offer.

    CFPB ↗

14. About $0.07 for one day

    04:58 · EP01-C14

    For this separate unchanged, interest-bearing $100 balance, our 365-day calculation is 0.25 ÷ 365 × $100 = $0.068493…, rounded to seven cents for one day. Actual methods differ, including 360/365 day conventions.

    Cash Splained calculation; CFPB daily-rate definition ↗

15. Amount + date + successful payment

    05:21 · EP01-C15

    Autopay can use minimum, statement-balance or other settings. Check scheduled amount/date and account terms. The example assumes adequate funds and a successfully processed payment; autopay does not override grace conditions.

    Capital One AutoPay (issuer example) ↗