Payments
Settlement
Updated
Settlement is the step where money from approved card payments actually moves from the cardholder's bank to the merchant's payment provider and becomes usable.
An approved payment is a promise, not money. Authorisation checks funds and holds the amount on the customer's account; capture starts moving the money from the issuing bank; settlement is when it lands in the merchant's payment provider balance.
Stripe shows this as balance states. A card payment, minus Stripe's fee, sits in the pending balance until it settles, and moves to the available balance at its available-on time. Settlement timing varies by country and sometimes by payment method.
Settlement is not the same as a payout. Settled funds sit in the merchant's balance until the payout schedule sends them to its bank account.
Frequently asked questions
- How long does card settlement take?
- It depends on the country and payment method. Stripe shows each payment's available-on date in the balance.
- What is the difference between settlement and payout?
- Settlement moves money into your payment provider balance. A payout moves it from that balance to your bank account.
Sources
- Balances and settlement time — Stripe
- How cards work — Stripe