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What is Transaction Settlement? Your Ultimate 2023 Guide

What does transaction settlement mean?

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Rebekah Carter Author
1 min Updated:

The process by which a merchant will receive funds from a customer for a transaction.

Transaction SettlementOnce a customer buys a service or goods, the issuing bank will send the funds to the payment processor used by the seller. These funds are then dispersed to the merchant. The term settlement is used to refer to the number of funds that are transferred to the merchant from the acquirer for the specific amount of the sale for the acceptance of the card transaction. The transfer of funds to the merchant is known as funding, and is the final step in the settlement process.

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Rebekah Carter

Rebekah Carter is an experienced content creator, news reporter, and blogger specializing in marketing, business development, and technology. Her expertise covers everything from artificial intelligence to email marketing software and extended reality devices. When she’s not writing, Rebekah spends most of her time reading, exploring the great outdoors, and gaming.

Comments 1 Response

  1. SEKENDAR PURKAIT says:

    I want to do the settlement & close my account.