Settlement Reporting

Settlement and funding explain how merchant transactions are grouped, processed, and paid out after batch closure.

This section provides an overview of how PCE manages settlements, the batch lifecycle, and the rules that determine when and how merchants receive funds.

What is a Settlement?

A settlement represents the finalized group of approved transactions from a closed batch that are sent to the processor for funding.

Once a batch is closed:

Transactions are submitted to the card networks

Fees, adjustments, and reserves are applied

Net funds are calculated for payout to the merchant

Settlement & Funding Lifecycle

Transaction Processing Sales, captures, and adjustments are completed during the business day.

Batch Closure Transactions are finalized and submitted for settlement.

Settlement Processing The processor (for example, TSYS or Fiserv) validates transactions and applies network rules.

Funding (Merchant Credit) Net settlement funds are credited to the merchant’s bank account based on configured funding schedules.

When Are Merchants Funded?

Funding timelines vary based on:

Processor (TSYS, Fiserv, etc.)

Card network rules

Merchant configuration

Risk controls (such as reserves or thresholds)

Typical timelines:

Funding occurs 1–3 business days after batch closure

Weekends and bank holidays may delay payouts

Exact funding schedules are defined during merchant onboarding.

Settlement Amounts – What Gets Credited?

The funded amount reflects the net settlement total, calculated as:

Approved Transactions − Processing fees − Chargebacks or adjustments − Reserve holds (if applicable) = Net Funds Credited

Common Deductions

Settlement payouts may include deductions for:

Processing and interchange fees

Network assessments

Refunds or reversals

Chargebacks

Reserve holds (rolling or fixed)

Reserve Holds

Some merchants may have a reserve applied to settlements as part of risk management.

Reserves:

May be a percentage or fixed amount

Can be held for a defined period

Are released based on agreed conditions

Processor-Specific Settlement Behavior

Settlement processing and reporting can vary by processor.

Examples:

TSYS: Settlement files and funding timelines follow TSYS batch cutoffs

Fiserv: Funding and reporting may differ based on platform and merchant profile

Processor-specific reports and timing are configured per merchant.

Settlement Reporting & Reconciliation

Merchants can use settlement reports to:

Track settlement batches and lifecycle status

View gross vs net settlement amounts

Reconcile sales, refunds, and payouts

Monitor funding and reserve activity

Key Benefits

Settlement reporting helps merchants:

Gain visibility into how funds are calculated

Track when money will be credited

Reconcile transactions across sales, settlements, and payouts

Understand deductions and reserves applied to their account

Enablement & Access

Settlement reporting availability and funding configurations are managed during onboarding.

For settlement configuration, funding schedules, or report access, please contact the Account Management team.

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Settlement and Funding timings to be mentioned in Settlement reporting

TSYS Fiserv timing and corresponding reports if any

• When is the merchant credited post batch closure
• Hold reserve

Settlement timing

How much money will be credited

What are the deductions

Settlement and Funding explain how merchant transactions are grouped, processed, and paid out.

This section provides an overview of how PCE manages settlements, the batch lifecycle, and the rules that control when and how merchants receive their funds.

Merchants can use these features to:

• Track settlement batches and monitor their lifecycle.
• Define how funds should be paid out (daily, weekly, thresholds, etc.).
• Gain transparency on reconciliation between sales, settlements, and payouts.