Settlement
The movement of processed payment funds into the merchant account or bank account.
Settlement is the step in which approved payment funds are paid out by the acquirer or payment provider into the merchant bank account, often grouped into batches and net of fees, refunds and reserves. It is a separate step from authorisation and clearing, and the timing depends on the acquirer’s settlement schedule, the merchant’s risk profile and the scheme cycles. A booking can be approved long before its underlying payment has settled.
felloh reconciles settlement back to the booking.
Acquirer files, bank arrivals and fee lines matched to the booking ledger and your general ledger — exceptions surfaced early.
What it means for travel businesses.
Travel businesses live with the gap between booking, payment, capture and settlement. A booking can show as paid in the booking system while the merchant bank account is still waiting for the settlement batch, and a refund can be issued before the original payment has actually settled. Without booking-level matching, the cash story drifts away from the operational story.
For travel finance, settlement is the moment cash becomes real and reportable. Until then, every booking that looks paid is a claim about future cash, not a fact. The gap matters: a settlement delay during a high-volume sales week can be the difference between a supplier payment that goes out on time and one that has to be rescheduled.
The travel businesses that get settlement right reconcile the bank credit against the underlying bookings the moment the file arrives, with fees, refunds and chargebacks split out automatically. The businesses that do not run on a week’s lag between selling and knowing, and only learn about settlement issues when cash starts moving the wrong way.
How felloh handles it.
felloh connects settlement movements to bookings, payment events, refunds and finance reporting evidence, splitting bulk settlement files into per-booking fees, refunds and chargebacks so the picture stays honest.
The Settlement and Merchant Acquirer views in the dashboard unpack every batch into the bookings, fees, refunds and chargebacks inside it. Anticipated against actual settlement is tracked over time, and the Cashflow view ties settlement arrival to supplier-payment planning so finance plans against real cash rather than authorisations.
For travel finance teams reconciling against the bank statement at month-end, the gap between booking takings and settled cash is finally explained. Cash forecasts match reality, supplier-payment timing reflects actual arrivals, and the reconciliation step that used to take days happens automatically.
Related terms.
Gross settlement
Settlement where the full transaction value is paid out before fees are deducted separately.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 termAcquirer
The financial institution or payment provider that enables a merchant to accept card payments.Read termGlossary termAnticipated settlement date
The expected date a processed payment will arrive in the merchant bank account.Read termSee how this works around your bookings.
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