Net settlement is the model where the acquirer deducts fees, refunds and any reserves from the transaction value before settling the net amount into the merchant bank account. It contrasts with gross settlement, where the full amount lands first and fees and refunds are charged separately. Net settlement makes the bank-account view simpler but requires extra work to reconstruct the gross-revenue picture.
Travel payments glossary
Net settlement
Settlement where the acquirer deducts fees, refunds and reserves before paying the merchant.
Why it matters in travel
Travel finance teams reporting net cash flow find net settlement convenient because the bank statement closely matches the operational picture. The trade-off is that gross revenue, refunds and chargebacks have to be reconstructed from settlement files to feed reporting.
Net settlement gives finance the clean bank-side picture but hides the gross revenue and the cost components inside the netted figure. For a travel business that wants to negotiate fees, optimise refund handling or watch chargeback ratios at brand level, those components have to be reconstructed from the settlement file — and the reconstruction is the unsung daily work in many finance teams.
The travel businesses that handle net settlement well unpack the file into per-booking gross, fees, refunds and chargebacks automatically, so the cost picture is honest without manual extraction. The businesses that do not unpack the file rely on the net number alone and miss the underlying trends.
How felloh helps
felloh reconstructs the gross picture from net settlement automatically — unpacking fees, refunds and chargebacks at the booking level — so finance gets both views without manual extraction.
Where this shows up in finance operations.
Net settlement 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.
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UpdatesCard Payment and Bank Transaction Reconciliation Made Easy for Travel pros
With felloh we make reconciliation of card payments and bank transactions simple.
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Connect the dots.
See how payments, settlement, refunds and reporting evidence connect around every booking.