What is payment settlement? When money really moves
By SendPay Business · · 2 min read
- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
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
Tap to explore
Tap each one to see what it means.
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.
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Colour
What it does
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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 launch.
How it works
Money on its way- 1Pick who to pay and type the amount
- 2Tap send and it is on its way
- 3It lands in their account
Why sign up
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It's all about creating your own financial platform with ease. Start with a free account today.
- 🪪A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
- 💳Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
- 🌐A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
- 🚀Your own financial platformDesign and preview your whole platform free, then launch when you are ready.
SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
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
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
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. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.