# Settlement & Reconciliation
Source: https://paymentsandrisk.com/docs/payments/settlement

Last updated 22 October 2026.

TL;DR

-   **Settlement** = When card networks/banks actually move money between accounts (T+1 to T+3)
-   **Funding** = When your processor deposits money in YOUR bank account
-   **Reconciliation** = Matching what you sold vs. what you got paid (they won't match exactly due to fees, [chargebacks](https://paymentsandrisk.com/docs/chargebacks/), timing)
-   Deposits ≠ sales. Understand the fee waterfall: [interchange](https://paymentsandrisk.com/docs/payments/reference/interchange/) + assessments + [processor markup](https://paymentsandrisk.com/docs/operations/reading-statements/)

Settlement is the step that actually moves your money, and it's the one nobody explains.

## Popular in This Section

-   **[Settlement Lifecycle](https://paymentsandrisk.com/docs/payments/settlement/lifecycle/)** - The 6 phases from capture to funding, including clearing vs settlement
-   **[Reconciliation](https://paymentsandrisk.com/docs/payments/settlement/reconciliation/)** - Three-way matching, common discrepancies, and automation strategies
-   **[Why doesn't my payout match?](https://paymentsandrisk.com/docs/payments/settlement/reconciliation/#match-one-payout)**: Export the records and work one bank deposit.
-   **[Money Flow & Fees](https://paymentsandrisk.com/docs/payments/settlement/money-flow/)** - Who pays whom, interchange breakdown, net vs gross settlement
-   **[Settlement Timing](https://paymentsandrisk.com/docs/payments/settlement/timing/)** - Batch cutoffs, weekend delays, and faster funding options

## Overview

Authorization approves a sale. Capture commits to it. Neither one moves money. Settlement does.

Tap a card for $5 and it doesn't jump to the coffee shop. It gets bundled with thousands of other sales, run through clearing, skimmed at every step, and dropped in the merchant's bank 1-3 days later.

Three reasons that matters:

-   **Cash flow.** A Friday sale might not land until Tuesday.
-   **Chargebacks.** [They](https://paymentsandrisk.com/docs/chargebacks/) can show up weeks after settlement and claw back money you'd counted.
-   **Your books.** What you sold and what you got paid won't match. You'll need to know why.

## Settlement Topics

[🔄 Settlement Lifecycle The 6 phases from capture to funding, plus clearing vs settlement distinction](https://paymentsandrisk.com/docs/payments/settlement/lifecycle)

[💸 Money Flow & Fees Who pays whom, interchange breakdown, net vs gross settlement](https://paymentsandrisk.com/docs/payments/settlement/money-flow)

[⏰ Settlement Timing Batch cutoffs, weekend delays, same-day and instant funding options](https://paymentsandrisk.com/docs/payments/settlement/timing)

[✅ Reconciliation Three-way matching, common discrepancies, automation strategies](https://paymentsandrisk.com/docs/payments/settlement/reconciliation)

## Quick Reference: Settlement Timeline

| Scenario | Captured | Batched | Settled | Funded |
| --- | --- | --- | --- | --- |
| Monday 2pm, 5pm cutoff | Monday | Monday 5pm | Tuesday | Wednesday |
| Monday 6pm, 5pm cutoff | Monday | Tuesday 5pm | Wednesday | Thursday |
| Friday 2pm, 5pm cutoff | Friday | Friday 5pm | Monday | Tuesday |
| Friday 6pm, 5pm cutoff | Friday | Monday 5pm | Tuesday | Wednesday |

## Quick Reference: Common Fee Ranges

| Fee Type | Typical Range | Who Receives |
| --- | --- | --- |
| Interchange (debit) | 0.05% + $0.21 to 0.80% + $0.15 | Issuing bank |
| Interchange (credit) | 1.50% + $0.10 to 2.50% + $0.10 | Issuing bank |
| Network assessment | Not published. Assumed 0.14% + $0.02 | Card network |
| Processor markup | 0.15% + $0.06 to 0.50% + $0.25 | Your processor |
| **Effective rate (total)** | **2.0% to 3.5%** | **All parties** |

That markup range isn't an estimate. It's [Helcim's published schedule](https://www.helcim.com/pricing/), verified 2026-08-02. In person it runs +0.40% + 8c at the entry band, down to +0.15% + 6c at $1M-5M a month. Online it's +0.50% + 25c down to +0.15% + 15c. [Stax](https://staxpayments.com/pricing/) charges 0% markup plus 8c in person, on a monthly subscription set by annual volume. Most other processors bundle the markup into a flat rate and never break it out.

**On flat-rate pricing, none of this shows up on your statement.** Square, Stripe, Braintree, PayPal and Shopify Payments charge one number and absorb the split. It's simpler to reconcile and impossible to audit. That's the trade.

## Next Steps

**Just learning settlement?**

1.  Start with [Settlement Lifecycle](https://paymentsandrisk.com/docs/payments/settlement/lifecycle/) → Understand the 6 phases
2.  Then [Money Flow](https://paymentsandrisk.com/docs/payments/settlement/money-flow/) → See where fees go
3.  Finally [Reconciliation](https://paymentsandrisk.com/docs/payments/settlement/reconciliation/) → Match your books

**Optimizing cash flow?**

1.  [Settlement Timing](https://paymentsandrisk.com/docs/payments/settlement/timing/) → Understand cutoffs and delays
2.  [Money Held or Frozen](https://paymentsandrisk.com/docs/operations/holds-and-reserves/) → Why funds get held
3.  [Payout Strategy](https://paymentsandrisk.com/docs/operations/payout-strategy/) → Faster funding options

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## See Also

-   [Authorization and Capture](https://paymentsandrisk.com/docs/payments/auth-and-capture/) - Transaction flow
-   [FX and Settlement](https://paymentsandrisk.com/docs/payments/reference/fx-and-settlement/) - International settlement
-   [Chargebacks](https://paymentsandrisk.com/docs/chargebacks/) - Dispute impact on settlement
-   [Reading Statements](https://paymentsandrisk.com/docs/operations/reading-statements/) - Fee breakdown
-   [Interchange](https://paymentsandrisk.com/docs/payments/reference/interchange/) - Fee structures