Settlement is the final stage of a transaction where the funds are actually moved from the customer’s issuing bank to the merchant’s acquiring bank. Transactions are typically authorized individually in real-time, but they are often settled together in a group or “batch” at the end of the business day. Once settled, the funds appear in your Stripe account balance, ready for payout.

Frequently Asked questions (FAQs)

  • How long does settlement take?
    The process of moving funds between banks usually takes 1-3 business days. This is why there’s a short delay between charging a customer and the money becoming available for payout in your Stripe account.
  • Is settlement the same as a payout?
    They are closely related but distinct. Settlement is the process of your acquiring bank (Stripe) receiving the money from the customer’s bank. Payout is the subsequent process of Stripe transferring that money from your Stripe balance to your own business bank account.
  • Who handles the settlement process?
    The payment processor (Stripe), in conjunction with the acquiring and issuing banks and the card networks, manages the entire settlement process.

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