Settlement Definition.

Settlement: the actual transfer of funds between parties, after clearing. For a merchant, it is the payout from the acquirer (typically D+1 to D+3), net or gross of fees depending on the contract. For systemically important infrastructures, it happens in central bank money (TARGET, TIPS). The PSP’s settlement reports are the cornerstone of reconciliation.

See also

→ Clearing→ Batch→ Reconciliation

Where this term appears

GuideThe four-party modelGuideCentral banks and payment infrastructuresGuidePayments in the BalkansGuidePayments in Ukraine and the CaucasusGuidePayments in the USGuidePayments in Oceania and CanadaGuidePayments in Central AsiaGuidePayments in AustraliaGuidePayments in BangladeshGuidePayments in IndiaGuidePayments in New ZealandGuidePayments in Pakistan

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