Payments & Settlement

Settlement

The process of moving funds from captured transactions through the networks to the merchant's account, usually in daily batches. Settlement is when a sale actually becomes money you can spend, minus fees and any reserve.

Settlement timing determines your cash flow. Understanding your batch schedule and payout timing lets you plan around the gap between a sale and a deposit.

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Related terms

Payments & Settlement

Capture

The step that converts an approved authorization into an actual charge, flagging the transaction to be settled and funded. Capturing only when you can fulfill the order helps avoid disputes over charges that ship late or not at all.

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Payments & Settlement

Batch

A group of captured transactions submitted together for settlement, typically once per day. Closing batches consistently ensures sales fund on schedule and keeps your records aligned with your deposits.

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Payments & Settlement

Payout

The deposit of settled funds into a merchant's bank account after fees and reserves are applied. Payout speed and schedule vary by provider and risk profile and directly shape a business's working capital.

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Approvals & Underwriting

Reserve

A portion of a merchant's funds a provider holds to cover potential future chargebacks or refunds. Reserves are common in high-risk processing and are released over time as the account proves stable.

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