Funds Flow
Movement of funds from payment initiation through settlement and payout to recipient.
Funds Movement
End-to-end funds flow through the payment ecosystem
Payer
Initiates payment
PSP / Acquirer
Authorization
Platform
Settlement account
Recipient Ledger
Internal balance
Payout
Bank / Wallet
Payer
Initiates payment
PSP / Acquirer
Authorization
Platform
Settlement account
Recipient Ledger
Internal balance
Payout
Bank / Wallet
Authorization
Authorization is the real-time approval of a payment transaction by the issuer bank.
- Confirms payer has sufficient funds/credit
- Funds reserved on payer's account
- No actual fund movement yet
- Authorization code returned if successful
Settlement
Settlement is the actual transfer of funds from the issuer to the acquirer and subsequently to the platform.
- Typically occurs T+1 to T+3 after authorization
- Net settlement after fees and chargebacks
- Funds received in platform settlement account
- Recipient ledger may be credited before or after settlement
Internal Ledger
Recipient balance management
Important: The internal ledger represents an accounting record of recipient balances maintained by the platform. This is a ledger balance, not necessarily a segregated bank account. Actual fund custody arrangements may vary.
Crediting Conditions
Funds are credited to recipient internal ledger only when all conditions are met:
- ✓Recipient is eligible and verified (or meets minimum verification requirements)
- ✓Transaction approved by risk/fraud controls
- ✓Transaction not placed on hold for review
Transaction Status Reference
Possible states during fund movement
Transaction initiated, awaiting authorization
Transaction under review, funds not yet credited
Transaction authorized, awaiting settlement
Funds credited to recipient internal ledger
Funds transferred to recipient external account
Transaction not completed, no funds movement
Funds returned due to refund or chargeback