Settlement: definition, example, and why it matters

Settlement typically takes 1–3 business days. Settled funds appear on your bank statement and your processor dashboard. Holidays and weekends delay settlement.

• Short definition. The process of transferring funds from a payment processor to your bank.
• Category. Settlement is a payments term used by service businesses when billing customers.
• How Glo Invoice handles it. Glo Invoice builds settlement into the invoice itself, so you don't track it on paper or in a spreadsheet.

Frequently asked questions

What does settlement mean?

Settlement typically takes 1–3 business days. Settled funds appear on your bank statement and your processor dashboard. Holidays and weekends delay settlement.

Related terms

• Stripe — A payment processor that lets businesses accept cards, ACH, and wallets online.
• Deposit account — The business bank account where payment processors deposit your funds.
• Card payment — A payment made by credit or debit card, processed online or in person.