Settlement and funding are the last two steps of a payment's life. Settlement is when a closed batch of captured payments is submitted to the processor and finalized. Funding is when those settled funds are deposited into your bank account. This page explains the flow, how to configure automatic settlement, and how to reconcile deposits.

The batch mechanics themselves — opening, closing, and reading batches — live in Batch Management. The reports you use to reconcile settlement and deposits live in Reports & Reconciliation.

Common use cases

• Understand when a captured payment turns into money in your bank
• Configure automatic daily settlement (auto-close)
• Reconcile a deposit against the batch that produced it

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From capture to deposit

Money moves through four stages. Only captured payments in a closed batch settle, and only settled funds are deposited.

flowchart LR
    A([Payment<br/>captured]) --> B([Batch<br/>open])
    B --> C([Batch closed<br/>= settled])
    C --> D([Funds deposited<br/>to your bank])
    B -. Batch Management .-> B
    C -. Auto-close / manual close .-> C
    D -. Deposits & ACH reports .-> D
    style C fill:#E1F5FE,stroke:#0288D1,stroke-width:2px
    style D fill:#E8F5E9,stroke:#2E7D32,stroke-width:2px

1. Capture — a sale or captured authorization joins the current open batch.
2. Settle — the batch closes (automatically at the auto-close time, or manually) and is submitted to the processor. See Batch Management.
3. Fund — the processor deposits the settled net amount into your configured bank account.

Settled amounts are net of refunds, and reflect surcharge and tip totals carried on the batch (netAmount, netSurcharge, netTip).

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Configure automatic settlement (auto-close)

By default a merchant's batch closes automatically at the configured auto-close time, which settles it.

If you use auto-close to automatically close your batch at a specific time, you'll see Auto close instead of a team member's name as the party that closed the batch.

To settle on your own schedule instead, disable auto-close and close batches manually with PUT /checkout/v3/batch/{id} — closing a batch initiates its settlement. See Batch Management.

⚠️

Close batches daily

Settling more than 24 hours after authorization can raise interchange fees and chargeback risk, and delays funding. Keep auto-close enabled or close batches at least once a day.

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Funding your bank account

Settled funds are deposited to the bank account on your merchant record — the deposit account type, routing number, and account number configured during onboarding. Funding timing depends on your processor and merchant configuration.

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Reconcile settlement and deposits

Match each stage against a report:

• Settled volume — GET /checkout/v3/report/volume, drilling into settlement transaction detail.
• Deposits to your bank — GET /checkout/v3/report/ach/items and ACH activity.
• Returned deposits — GET /checkout/v3/report/ach/returns.

The full report catalog and the end-to-end reconciliation workflow are in Reports & Reconciliation.

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Related configuration

Funding behavior is shaped by a few adjacent features, each with its own page:

• Funding Rules — how and when payouts are scheduled (planned page).
• Split Payouts — dividing a payout across multiple accounts (planned page).
• Cost Recovery / Surcharging — fees that affect the net funded amount. See Surcharging.

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Best practices

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See also

• Batch Management: open, close, and read the batches that settle
• Reports & Reconciliation: settlement, deposit, and ACH reports
• Payment Lifecycle: how a payment reaches settlement
• Surcharging: fees that affect the net funded amount