What is batch settlement? How a day's card payments reach your bank

By SendPay Business · · 2 min read

What is batch settlement? How a day's card payments reach your bank

When customers pay by card, the money doesn't reach your bank one payment at a time. Card machines and payment providers usually group the day's approved payments into a batch and send it off for settlement together.

How batch settlement worksWhy closing the batch mattersWhat can slow it down

How batch settlement works

  1. Each card payment is authorised when the customer pays.
  2. At the end of the day, the terminal or provider closes the batch, often automatically.
  3. The batch goes to the acquirer, which clears it through the card networks.
  4. The money, minus fees, is paid to the business's account, often within a few business days.

Why closing the batch matters

Payments that aren't sent for settlement can be delayed, and authorisations can expire if left too long. Most modern terminals close batches automatically, but it's worth checking.

What can slow it down

Weekends and bank holidays, new-account holds, unusually large payments and risk reviews can all mean settlement takes longer than usual.

Where SendPay fits

SendPay doesn't offer card machines or acquiring. SendPay platforms let you get paid with payment links, invoices and subscriptions, alongside GBP, EUR and USD accounts and branded Visa cards, powered by licensed partners.

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Questions people ask

Does my payout add up?

Check what should have arrived against what did.

Payout reconciliation calculator →
How much money is tied up waiting for settlement?

Work it out from your takings and payout days in the free calculator.

Payment float calculator →
What is payment settlement?

When money actually moves to the business.

Payment settlement →
Authorisation vs capture?

The two steps of taking a card payment.

Authorisation vs capture →
What is an acquiring bank?

The bank that processes card payments for a business.

Acquiring banks →

Read next

This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.