Glossary · payments and processing
What is settlement?
Settlement is the moment value actually reaches the seller, in a form the seller can use. A payment being authorised, confirmed or marked paid is not settlement. Settlement is when the money is yours.
Three things people call settlement
In cards, settlement is when the acquirer moves funds to your bank, typically a day or more after authorisation. In blockchain payments it is faster but has more steps, and the word gets used for all of them.
Network settlement is the transaction confirming on-chain. Nothing is reversible after this, and the value exists at your provider.
Account settlement is that value landing in your balance, in whichever currency you chose to hold. This is where conversion happens if you asked for it.
Bank settlement is you withdrawing to your own account, and it is the only one your accountant will call settled. What each rail costs is on pricing, and the detail worth reading twice is on off-ramp.
The distinction matters because your accountant means the third one and your integration means the first. Agreeing which you both mean saves a monthly argument.
Compare
The three settlements, in order
Same word, three different moments, and only the last one is in your bank.
| Stage | What has happened | What you can do |
|---|---|---|
| Network settlement | The transaction has confirmed on-chain and cannot be reversed | Fulfil the order |
| Account settlement | The value is in your CoinGate balance, in the currency you hold | Convert, pay out, or withdraw |
| Bank settlement | You have withdrawn to your own bank account | Spend it like any other money |
Only the first is a blockchain property. The other two are product behaviour and differ between providers, which is why they are worth asking about.
What to pin down with any provider
Three questions that decide how settlement behaves for you.
When does conversion happen
At confirmation, at withdrawal, or when you ask. It changes who carries the price movement in between.
Frequently asked questions
Is a confirmed payment settled?
On-chain, yes. In your bank account, no. A confirmed transaction is irreversible, which is the part that matters for fulfilling an order, but the funds still have to reach your balance and then your bank.
How long does settlement take?
Network confirmation is minutes to about an hour. Account settlement follows it. Withdrawal to a bank depends on the rail, and SEPA is same or next business day.
Can I settle part in crypto and part in fiat?
You can hold several balances and move between them. What each incoming payment converts into is an account setting rather than a per-order split.
What is the difference between settlement and payout?
Settlement is money arriving for you. A payout is money you send to someone else. Our blog post on settlement, payout and withdrawal takes the three apart properly.