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Settlement · Glossary

Settlement time

Also called: payout window, funding time

Settlement time is the period between transaction authorization and funds arriving in the merchant's bank account. Standard U.S. settlement is next business day for in-person and 1-2 business days for online; same-day and instant options exist for additional fees.

Why this matters to merchants

Settlement timesits inside the broader system of U.S. payment processing economics that determine a merchant’s effective rate. Most operators encounter this term on their merchant statement without understanding what it controls, which is how the four hidden fees covered by our methodology slip past unnoticed.

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