The process of matching, verifying, and reconciling payment instructions between the parties involved before settlement.
When paying with cards, the path from purchase to funds delivery involves intermediary steps between consumers and businesses. Learning this clearing process helps track transactions end-to-end. Let's explore the full life cycle that transforms sales from authorized promises into settled payments.
Clearing encompasses the steps between transaction authorization and settlement into merchant accounts. It covers:
Clearing facilitates the actual delivery of funds, concluding transactions.
Common steps in the clearing process include:
Insights into clearing workflows help merchants track payments and troubleshoot hiccups. While clearing operates behind the scenes, it critically enables the realization of successful commerce.
Clearing is the lifeblood carrying authorized transactions from approval to funds disbursal. Mastery of these in-between steps creates transparency for merchants within the highly complex payments landscape.