Payment settlement

Payment settlement is the point at which a customer’s payment is completed and the money is transferred to your business account, no longer pending. It usually follows authorisation and clearing by banks or payment processors, and the payout you receive is often the net amount after fees, refunds, chargebacks or currency conversion.

Settlement works differently by method: card payments typically go through authorisation, capture and then settlement; bank transfers settle when the payer’s bank sends funds and your bank credits them; e‑wallets and marketplaces pay out on their own schedules. Settlement can be gross (full amount paid, fees billed separately) or net (fees deducted). How you recognise the income depends on your accounting method, for example cash versus accrual.

What to check on each payout or settlement report:

• Which transactions are included and the period covered.
• Gross takings, fees and adjustments, and the resulting net amount.
• Any refunds, chargebacks or reserves deducted or pending.
• Currency used and any conversion applied.
• References you can match to invoices or orders.