What is Settlement report?
Acquirer-provided file (typically daily) listing captures, refunds, fees, and net funding; the ground truth for merchant reconciliation and revenue recognition.
A settlement report is a file generated by an acquiring bank, or its processor on its behalf, providing a detailed breakdown of all card-related financial activities for a specified period, typically a single business day.
This report itemises individual transactions that have progressed to settlement, including successful captures, refunds, chargebacks, and any associated processing fees levied by the acquirer and card schemes.
Each entry within the report will reference key transaction identifiers such as the acquirer transaction reference number, the card scheme reference, and the original authorisation code, alongside the transaction amount and currency, allowing for precise matching against a merchant’s internal records.
Merchants typically access settlement reports via a secure portal provided by their acquirer or receive them as an automated data feed, integrating them into their enterprise resource planning (ERP) or accounting systems.
This report serves as the authoritative source for reconciling received funds with expected revenue and for accurately booking financial entries.
A common mistake is failing to account for delayed settlement of specific card types or international transactions, which may appear on a subsequent day's report, leading to temporary discrepancies in daily cash flow projections if not anticipated.
Related terms
Matching gateway, acquirer, and bank records to isolate discrepancies (missing captures, unclear fees, timing gaps); a core finance workflow for scale merchants.
The transfer of funds from the acquirer to the merchant's bank account, net of fees and reserves.
The schedule (daily, weekly, monthly) on which an acquirer pays a merchant, net of fees, reserves, and refunds, into their nominated bank account.
Related guides.
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