Glossary

Settlement Error

A Settlement Error refers to a transaction status indicating that an issue has occurred during the processing phase, which is now hindering the completion of the settlement process. This type of error can arise from various sources and can disrupt the normal flow of transferring funds from the acquiring bank to the merchant’s bank account.

Key characteristics and causes of settlement errors include:

The impact of settlement errors can be significant, affecting the cash flow and financial operations of merchants. To mitigate and resolve settlement errors, the following steps are often taken:

In summary, a settlement error denotes a disruption in the transaction processing flow that prevents the successful transfer of funds from the acquiring bank to the merchant’s bank account. Addressing settlement errors involves identifying the root cause, performing reconciliations, and engaging with relevant parties to resolve issues and ensure smooth and accurate settlement processes.

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