Settlement
Payout
The transfer of settled funds from acquirer to merchant bank account, cadence governed by the funding cycle and any reserve holdbacks.
Related terms
Funding cycle
The schedule (daily, weekly, monthly) on which an acquirer pays a merchant, net of fees, reserves, and refunds, into their nominated bank account.
Settlement
The transfer of funds from the acquirer to the merchant's bank account, net of fees and reserves.
Merchant reserve
Funds held back by the acquirer (rolling, upfront, or capped) as security against chargeback and fraud risk.
Related guides.
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