Abstract: An automated system and method which monitors the cash flow of the merchant account and maintains a minimum balance for each merchant account based upon allowable delays. The automated system/method includes a point of sale device and data files for transactional activity. The point of sale device resides at the merchant's premises and is used for commercial transactions between a credit card holder and a merchant. The data files are comprised of the net transactional activity between the credit card holder and the merchant. The system further includes a merchant credit card transaction processor for processing data files at the merchant premises and a merchant database. The system further includes a transaction processor in communication with the merchant credit card transaction processor, the merchant database and a plurality of card issuers.