Settlement

Settlement is the final transfer of funds from a payment gateway to a merchant's designated wallet after a payment has been confirmed.

Settlement in Crypto Payments

Unlike traditional payments where settlement takes 1-3 business days, crypto settlements can be:

Instant: Funds available immediately after confirmation

Daily: Batched settlements at end of day

Weekly: Aggregated settlements for lower fees

Settlement Flow

Customer    →    Gateway    →    Merchant
  Pays           Confirms        Receives
  USDT           Payment          Funds

Customer sends USDT to payment address

Gateway confirms transaction (19+ confirmations)

Gateway calculates fees and net amount

Funds settle to merchant's wallet

Settlement Amounts

Amount TypeDescription

|-------------|-------------|

GrossOriginal payment amount FeesGateway processing fees NetAmount merchant receives

Example:

Gross: 100.00 USDT

Fee (1% + $0.30): 1.30 USDT

Net: 98.70 USDT

Settlement vs Payout

Settlement: Funds available in gateway balance

Payout/Withdrawal: Transfer from gateway to external wallet

Factors Affecting Settlement

Confirmation time: Faster with fewer required confirmations

Network congestion: Busy networks delay confirmations

Gateway policies: Some hold funds for risk assessment

Benefits of Crypto Settlement

Speed: Minutes instead of days

Global: No banking hours or holidays

Transparency: Track on blockchain

Lower fees: No intermediary banks

Related Terms

Blockchain Confirmations

USDT (TRC-20)

Payment Gateway

Learn More

Pricing & Fees

Accounting Guide