Funding & Settlement Times

How do Settlements Work in Card Processing?

 Settlement is the process where authorized card transactions are finalized and funds are transferred through the card networks to the Merchant Account. Settlement typically occurs after transactions are batched and submitted by the processor.

Once settled, funds become eligible for deposit according to the account’s funding schedule. Settlement timing and mechanics are governed by card network and bank rules.

Settlement is a distinct step from authorization and does not guarantee immediate deposit.

How do Weekends and Holidays Affect Funding?

Weekends and bank holidays can affect funding because settlement and banking operations typically occur on business days. Transactions processed near weekends or holidays may not settle or fund until the next available business day.

Delays related to non-business days are procedural and not specific to Easy Pay Direct. Funding schedules are subject to banking calendars.

What is Batch Processing, and Why Does it Matter?

Batch processing is the step where a group of authorized transactions is submitted together for settlement. Batches are typically closed at the end of a processing period, such as daily.

If transactions are not batched, they may remain authorized but not move forward to settlement. Proper batch processing is necessary for transactions to progress toward funding.

Batch timing can influence when settlements occur and, in turn, when deposits are made.

What is the Difference Between Pending and Settled Transactions?

Pending transactions are authorized but not yet finalized or settled. They represent approvals that are still in the processing pipeline. Settled transactions have completed the settlement process and are eligible for deposit based on the funding schedule.

Pending status does not mean a transaction failed or was declined. It indicates that settlement has not yet occurred.

Understanding this distinction helps clarify timing expectations for funding.