Merchant Settlement and Payout

Captured card transactions become batched, netted, reserved, adjusted, and funded to the merchant bank

Merchant Settlement and Payout Captured card transactions become batched, netted, reserved, adjusted, and funded to the merchant bank 01 / Sources 02 / Batch 03 / Compute 04 / Settle 05 / Payout Captured Txns · authorized + captured · 01 / Sources · hot path Captured Txns authorized + captured hot path Fee Schedules · per-merchant rates · 02 / Batch · reference Fee Schedules per-merchant rates reference Batch Cutoff · daily window · 02 / Batch · T+0 Batch Cutoff daily window T+0 Chargebacks · dispute debits · 03 / Compute · adjustment Chargebacks dispute debits adjustment Gross-to-Net · fee engine · 03 / Compute · per-txn Gross-to-Net fee engine per-txn Rolling Reserve · holdback balance · 04 / Settle · risk Rolling Reserve holdback balance risk Settlement Ledger · double-entry · 04 / Settle · immutable Settlement Ledger double-entry immutable Merchant Payout · T+2 funding file · 05 / Payout · ACH / wire Merchant Payout T+2 funding file ACH / wire Reconciliation · captures vs payout · 05 / Payout · control Reconciliation captures vs payout control captured txns hot path daily batch at cutoff fee join reference settled net post-reserve holdback rolling % dispute debits adjustment funding file T+2 payout posted entries control Legend primary data policy / PII async batch data store

Funding Path

  • • Captures accumulate until the daily batch cutoff
  • • Gross-to-net deducts interchange, scheme fees, and acquirer markup
  • • The ledger drives a T+N funding file to the merchant bank

Risk Holdback

  • • A rolling reserve withholds a percentage of settled volume
  • • Reserve funds release on a schedule, not with the batch
  • • Chargeback debits post as adjustments before payout

Reconciliation

  • • Every payout ties back to captured transactions
  • • Fees, reserve, and adjustments reconcile to the gross
  • • Breaks are quarantined before the funding file is cut

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