Setu.Technology
GlossaryPayments & Finance

Settlement

Also called: payout, settlement cycle

What is Settlement?

Settlement is the transfer of money collected on your behalf — by a card network, gateway or delivery aggregator — into your bank account, usually net of commission, charges and taxes, on a defined cycle.

Why Settlement matters

The gap between a sale and its settlement is working capital you are financing. On aggregator sales, the settlement statement is also the only place the real deductions become visible.

Settlement formula

Net settlement = Gross sales − Commission − Payment charges − Taxes withheld − Adjustments

Divide by gross sales to get your realisation rate.

How Settlement works in practice

Reconcile every payout against the orders it covers, line by line where possible. Missing orders and unexplained deductions are common enough that the check pays for itself.

Frequently asked questions

Commission, payment charges, promotional funding, taxes withheld and prior-period adjustments all come out before settlement.

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