What is payment settlement? When money really moves
By SendPay Business · · 2 min read
When a customer pays, the money doesn't arrive in the business's account at that moment. First the payment is approved, then it is cleared, and finally it is settled: the point at which the money actually moves between the banks and lands with the business.
Three stages of a payment
- Authorisation: the customer's bank checks the funds and approves the payment.
- Clearing: the banks swap the details of the payment and work out who owes what.
- Settlement: the money moves between the banks and is paid to the business.
Why card payments take days
Card payments are usually cleared and settled in batches, so a business often receives the money one to three working days after the sale. Some systems, such as Faster Payments and CHAPS, clear and settle much faster.
Why it matters for your platform
If you run a platform that takes payments for others, your customers will ask when their money arrives. Being clear about settlement times up front avoids support queries and builds trust.
Where SendPay fits
SendPay platforms include accounts, payment links and invoicing under your own brand, powered by licensed partners. You can preview your platform before you pay.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
Does my payout add up?
Check what should have arrived against what did.
Payout reconciliation calculator →When will my currency exchange settle?
Work out the value date with the free calculator.
Value date calculator →What does waiting for settlement cost me?
See how much money is in transit and what it costs in the free calculator.
Payment float calculator →What is an acquiring bank?
The bank that receives card payments for a business.
What is an acquiring bank? →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.