Gross settlement
Settlement where the full transaction value is paid out before fees are deducted separately.
Gross settlement is the model where the acquirer pays out the full transaction value into the merchant bank account and then collects fees, refunds and any chargebacks separately, usually on a different schedule. It contrasts with net settlement, where fees are deducted before settlement so the merchant only sees the net amount arrive. Gross settlement gives the merchant a cleaner gross-revenue view at the cost of an extra fee reconciliation step.
What it means for travel businesses.
Travel finance teams reporting on gross revenue prefer gross settlement because it removes the need to back out fees before reporting. The trade-off is that fees, refunds and chargebacks arrive on their own timetable and have to be reconciled against the original payment to keep the cost picture honest.
Gross settlement is the cleaner picture for reporting but the harder picture for cash planning. Money arrives looking like topline revenue, then leaves later as fees, refunds and chargebacks — and the gap between the two can mask real problems. A growing business looking only at gross can convince itself it is healthier than it is.
The teams that report well on gross settlement also track the lag between gross arrival and the offsetting cost flows, and tie both back to the booking that drove them. That way the gross number is honest and the net picture is available the moment it is needed. The teams that do not reconcile the two have arguments at the board table about which number is correct.
How felloh handles it.
felloh reconciles gross and net flows automatically, splitting bulk settlements into per-booking fees, refunds and chargebacks so finance gets both the gross revenue picture and the true cost picture without manual extraction.
The Settlement view in the dashboard shows gross arrivals against the bookings that drove them, with the offsetting fee, refund and chargeback flows reconciled back to the same record. The Cashflow view exposes the lag between gross arrival and net cost so finance teams running on gross reporting still see the real picture.
For travel finance teams reporting on gross revenue while managing real cash, the gap disappears. Topline reports stay clean, and the underlying cost picture is honest without anyone having to back fees out of a spreadsheet.
Related terms.
Settlement
The movement of processed payment funds into the merchant account or bank account.Read termGlossary termNet settlement
Settlement where the acquirer deducts fees, refunds and reserves before paying the merchant.Read termGlossary termBatch settlement
Settlement of multiple transactions grouped together and paid out in one consolidated movement.Read termGlossary termAnticipated settlement date
The expected date a processed payment will arrive in the merchant bank account.Read termGlossary termMerchant Discount Rate (MDR)
The total fee a merchant pays per card transaction, expressed as a percentage of value.Read termSee how this works around your bookings.
Bring one payment, reporting or cash-position problem. We will show how felloh connects the booking-level money trail behind it.
Book a walkthrough