Clearing is the process by which payment information is exchanged between the merchant’s acquirer and the cardholder’s issuer (or between two banks) to confirm the amounts owed before settlement happens. It validates the transaction details, applies interchange and scheme fees, and produces the data needed for funds to move at settlement. Clearing and settlement are separate steps even when they happen back-to-back.
Travel payments glossary
Clearing
The process of exchanging transaction information between banks before settlement.
Why it matters in travel
For travel finance, the gap between clearing and settlement is where a lot of cash-flow confusion lives. A transaction can be authorised, cleared and reported as paid in the booking system while the merchant bank account is still waiting for the settlement movement.
Most travel finance teams treat clearing as invisible plumbing, and most of the time it is. The exception is when something goes wrong — a clearing-house incident, a scheme rule change or a regional banking holiday — and the gap between cleared and settled funds suddenly matters. A travel business with thin operating cash can feel that gap as immediate pressure.
The teams that handle clearing well distinguish authorised, cleared and settled state at the booking level so the operational picture matches the cash picture. The teams that do not assume the booking is paid when the gateway says approved, and find themselves explaining to suppliers why funds promised on Friday are not yet in the account on Monday.
How felloh helps
felloh distinguishes authorised, cleared and settled state at the booking level so finance teams can plan operating cash and supplier payments against what has really moved.
Where this shows up in finance operations.
Clearing touches more than one workflow at felloh. Start with the pages most travel teams reach for next.
- Financial Operations
Reconciliation, settlement, refunds and protected-funds workflows on one booking-aware ledger.
Explore - Automate Reconciliation
Bulk settlements unpacked to fees, refunds and chargebacks; bank transfers matched without references to chase.
Explore - Know Your Cash Position
See received, protected, committed and available cash by booking — without rebuilding the picture from exports.
Explore
More on travel finance operations.
Real-world context from the felloh team and customers, written for travel finance and operations.
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InsightsReconciliation: What it is and why your Travel Business needs it
Why travel operators see a gap between sales records and the bank balance — and the basics of reconciling payments back to bookings.
Read article -
UpdatesCard Payment and Bank Transaction Reconciliation Made Easy for Travel pros
With felloh we make reconciliation of card payments and bank transactions simple.
Read article
Connect the dots.
See how payments, settlement, refunds and reporting evidence connect around every booking.