Settlement, payments glossary

Settlement

The transfer of funds from the acquirer to the merchant's bank account, net of fees and reserves.

Settlement timelines vary by acquirer, scheme, region, and risk profile. T+1 is standard for established merchants in major markets; high-risk verticals can see T+7 or longer with rolling reserves. Faster settlement (instant payouts, real-time rails) is increasingly available at a premium.

Related terms

Merchant reserve

Funds held back by the acquirer (rolling, upfront, or capped) as security against chargeback and fraud risk.

Rolling reserve

A percentage of each transaction held by the acquirer for a fixed period (e.g. 10% for 180 days) to cover chargeback risk.

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