Payment Settlement Guide: Understand the Payment Settlement Process

Customer purchases a product from an e-commerce website, then, selects the payment option and pays through various payment options available. Before the money reaches an e-commerce (merchant) bank account, it passes through some simple steps. This process is known as settlement. In simple words, settlement is the process through which a merchant receives money paid by their end users for a particular product/service. Now, let’s understand what a transaction settlement is and how a payment settlement is done when transactions are sent through the payment system.

How does the payment settlement process take place?

The following parties are involved in the settlement process:

1. Your customer
2. The online website where the customer is transacting on
3. The customer’s bank, popularly known as issuing bank
4. NTT Data Payment Services – online payment gateway helping collect and process payments,
5. The Merchant’s bank where your money gets settled 

NTT Data Payment Services’s Payments Settlement – Flow Chart:

1. Customers make successful payments: The customer makes a successful transaction and money is deducted from his bank account.
2. Customer Bank and NTT Data Payment Services interact: Both parties tally the successful transaction.
3. NTT Data Payment Services checks risk factors while the customer’s bank transfers money to NTT Data Payment Services. It further prevents fraudulent transactions.
4. NTT Data Payment Services settles the money in your bank account: NTT Data Payment Services receives the money from the customer’s bank, and the same is transferred directly to your bank account.

When will you get the money transferred to your bank account?

With NTT Data Payment Services, money gets transferred to your bank account automatically in 2 working days after a successful transaction. National holidays and Sundays are not considered as working days. Also, note that funds are settled to merchant accounts based on funds received from Respective Banks.

Refund Guide- Why Refund Takes Time to Reach Customers? 

How do you check your settlements in your bank account statement?

Each settlement has a Unique Transaction Reference (UTR) number, which is provided by our banking partners. You can see this number when you download Settlement Reports from the Reports section. This is a unique reference number available across banks, which can be used to track a settlement in your bank account.

Can you get your money settled in some other bank account?

No, you cannot. We settle the money in the bank account details that are provided by you during the registration process. In case you want to change your banking details, you can get in touch with the help desk.