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Settlement vs. Deposit

Settlement vs. Deposit

Settlement vs. Deposit

Settlement records payment funds within the processing flow. A deposit is the amount that ultimately appears in the merchant’s bank account.

Glossary

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Reference record

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Updated

September 22, 2026

In payments

Settlement and bank deposit are related, but they are not always the same record or event. Payment funds move through processing and settlement before the final payable amount reaches an external bank account. Fees and other adjustments can occur along that path.

In reconciliation

Finance teams should not assume every processor settlement maps one-to-one to a bank credit. Timing, grouping, fees, reserves, refunds, chargebacks, and adjustments can change the amount or timing of the deposit.

Example

Illustrative example
Processor settlement$10,000
Fees deducted before payout$240
Bank deposit$9,760

Both records are valid. Reconciliation accounts for the $240 between them.

Related terms

Related Insights

Updated

September 22, 2026

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