Glossary
Settlement
Settlement is the movement of the money behind a payment: from the issuer to the acquirer through the scheme, from the acquirer or provider to the payment business, and from the business to its merchants. It follows a cycle, such as T+1 or T+2 for cards, weekly for some methods, instant for PIX, UPI or SEPA Instant, and it is usually net: the provider pays the gross amount less its fees, refunds and chargebacks of the period.
The two legs
The first leg is the provider’s: it pays the licensed payment business what its merchants earned, on the provider’s schedule, with a statement that lists the payments it covers. The second leg is the business’s own: it pays each merchant from its balance, after its fees, limits and the rolling reserve, on the schedule in the merchant’s contract. The two legs rarely match day for day, which is why the business needs a ledger.
Settlement models by method
Cards settle through the acquirer in one to several days; instant bank methods credit the account in seconds, and the provider may still batch its payouts to the business; vouchers settle when the cash is collected; crypto providers settle fiat after conversion or deliver the asset. The catalogue marks the typical settlement time per method.
On the platform
Tranzify’s ledger writes each payment when the provider confirms it and the merchants’ settlements with their approval and payment; the licensed client moves the money through its own accounts, the platform keeps the record and prepares the instruction.
Updated: 2026-11-08