Settlement Report Reconciliation Guide (United States)

Description: Learn to use the Settlement Report to understand how your daily net payout is calculated. This guide explains how to use the report to reconcile your payout and track your sales from capture to payout.

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Understand Report Terms

The report is broken down by transaction type. Here’s what each transaction type means:

Term	Definition	Date
Batched	Transactions that have been sent to the acquirer for processing. The final amount may change before settlement.	Capture date
Settled	Transactions that have been successfully processed and completed. This is the starting point for your payout calculation.	Batched closed dare
Refund	Transactions in which funds are returned to a customer.  This amount is subtracted from your payout.	Batched closed dare
Chargeback	Transactions reversed due to a customer dispute	Batched closed dare
Reject	Transactions not approved or processed.	Batched closed dare
Payout	Transferred funds	Payout date

Note: For American Express, depending on your account setup, Amex transactions may be funded separately. They might appear in your Batched data but not in your final Settled and Payout amount. 

Reconcile Your Payout

Method 1:  Review the Final Payout Amount 

This is the simplest way to confirm that your payout amount is correct. For this method, you only need to focus on the data for a single batched closed date.

Use this formula:

• Net Payout = Settled - Refund - Chargeback - Reject 

Example

You are reconciling your payout for July 29th. On the report, you find these net totals for that settlement date:

• Settled: $,8500
• Refunds: $120
• Chargebacks: $200

Using the formula: $8,500 (Settled) - $120 (Refunds) - $200 (Chargebacks) = $8,180

Your Net Payout for July 30th is $8,180

Method 2:  Track a Batch from Capture to Settlement

Use this method to follow a specific day's sales (a "batch") from the capture date until the payout date. 

Key Concept

The Batched amount from one day will not equal the Settled amount on the next day. This is because some transactions may be rejected, settled separately (like Amex), or refunded.

To review the full transaction cycle for each day, we would need to start from the Batched from the day before the Batched Closed Date and review all the transaction types for the Batched Closed Date. 

Example

You want to see what happened to all the sales that were made on July 28th.

1. On your report, look for the Batched entry dated July 28th.
   • You see 182 transactions were batched for a total of $9,500. This was your total captured sales amount for that day.
2. Find the Settlement: Now, look at the settled data for the following batched closed day, July 29th. This is typically when the batch from the 28th gets settled.
   • You see 175 transactions were Settled for a total of $8,500.
3. Analyze the Difference: The Batched amount ($9,500) is different from the Settled amount ($8,500). This difference is expected and can be explained by transactions that were part of the initial batch but were not included in the final settlement (e.g., declines or Amex transactions).
4. Understand the Payout:  The total payout in this example is based on the settled transactions, which bring the final payout amount and the payout date of 07.30 to $9,500 based on 175 transactions.