Daily Settlement Operations

Daily settlement is for prior cutoff activity. The daily settlement reports are available by 9am PT.

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Merchants may see the following debits/credits daily:

1. Deposit for all purchases. Merchant will receive full value for the purchases less:

a. Chargebacks

b. Refunds

c. Adjustments

2. Withdraw for all disbursements.

3. Withdraw for all chargebacks if Purchases unable to pay for chargebacks (see above, chargebacks are usually deducted from Purchases prior to deposit).

a. If merchant bank account at the acquiring bank then a withdraw will be posted.

b. If merchant bank account not at the acquiring bank then the reserve account will be debited and if non-sufficient funds then deduction from purchase proceeds.

4. Withdraw or deposit for adjustments

5. Withdraw to fund the reserve

6. Deposit for all disbursement returns.

7. Deposit for all chargeback representments.

A summary of the chargeback/representments/return funds movement actions is below. These are possible actions on a transaction in the daily exception report:

• Open – Merchant debited --funds movement: debit to merchant account

• Documentation received

• Closed – 2nd Chargeback – merchant debited --funds movement: debit to merchant account

• Representment - merchant paid. --funds movement: credit to merchant account

• Return – merchant paid -- this is a returned disbursement, --funds movement: credit to merchant account

The merchant will see one or more of the following entries on their bank statement:

  • Purchase payout: CompanyID: “TabaPay” Description: “PmtMMDDB”
  • Disbursement settlement: CompanyID: “TabaPay” Description: “DisbMMDDA”
  • Adjustment settlement: CompanyID: “TabaPay” Description: “AdjMMDDA”
  • TabaPay fees: CompanyID: “TabaPay, Inc.” Description: “FeesMMDDB”

The ACH debit and/or credit on the on the bank account can be identified with the following identifiers:

  1. Company Name: "Tabapay" + Numeric identifier. For example: TabaPay 10004567
  2. Entry description:
    a. Purchase deposit: “Pmt” + MMDD + letter
    b. Disbursement debit: “Disb” + MMDD + letter
    c. Reserve debit: “Resv” + MMDD + letter
    d. Adjustment debit: “Adj” + MMDD + letter

The Numeric identifier is provided by TabaPay prior to the merchant going live.

The MMDD is the month and day of the settlement. For example, Thursday payment activity will have a settlement MMDD for the Friday.

NOTE: Friday payment activity is aggregated with Sat/Sun and will have a single MMDD for a Monday deposit.

The letter is a TabaPay included letter to help identify the payment in the event of a merchant reported problem. The letter can be A-Z.

The day after a weekend or holiday, TabaPay will post the deposits or withdrawals in aggregate, for each day of the weekend or holiday.

For example, if a holiday is on a Monday, the merchant will receive the following settlements in an aggregate credit (or debit) on Tuesday: (i) Friday activity that would typically settle Monday, (ii) Saturday activity that would typically settle Monday, (iii) Sunday activity that would typically settle Monday and (iv) Monday holiday that settles Tuesday.

Card Settlement flow

The card settlement flow is shown below:

  1. The bank debits disbursements from the merchant account
  2. If there are insufficient funds to cover the disbursement (including net settlement against AFT) then the merchant reserve is debited.
  3. AFT proceeds are credited to the merchant account less chargebacks
  4. Daily interchange and network fees are deducted from the merchant account.
  5. TabaPay pays all network fees to each network.

ISO / multi-merchant Settlement

An ISO or a merchant with multiple merchant IDs can specify ISO level settlement (or individual merchant settlement). ISO level settlement uses a single account and single ACH debit or credit for all merchants. The ISO is responsible for sending money to each merchant using the ISO summary report.

Cutoff time

Cutoff time varies by network and type of transaction. The merchant will be paid or debited for all transactions posted in the 24 hours prior to cutoff time.

Network Transaction type Cutoff time
Visa Purchases, refunds 03:00 PT
Visa Disbursements 03:00 PT
Mastercard Purchases, refunds 18:00 PT
Mastercard Disbursements 23:00 PT
STAR Purchases, Disbursements 15:00 PT
Accel Purchases, Disbursements 13:00 PT
PULSE Purchases, Disbursements 22:00 PT
NYCE Purchases 13:30 PT
NYCE Disbursements 03:00 PT
American Express Purchases 21:00 PT*
Bill Payment (CC) Disbursement, cc payoff 15:00 PT
ACH Same Day Disbursement and collection 07:30am PT
ACH Next Day Disbursement and collection 05:30pm PT
Real Time Payments (RTP) Disbursements 21:00 PT**

The daily transaction report has all transactions that comprise the daily merchant settlement, respecting these cutoff times.

*American Express is settled two business days after cutoff.

*RTP report cutoff is 9pm PT, which matches the daily reconciliation reports and funding true-up (midnight-midnight ET). See separate RTP guide.

Updated 20 days ago