In the context of Adyen, a settlement delay refers to the time it takes for the funds from a processed transaction to be transferred from Adyen to the merchant’s bank account.
🕰️ Why Does Settlement Delay Occur?
1. Processing Time: Payment methods have different processing times (e.g., credit cards, bank transfers).
2. Batch Processing: Adyen may group multiple transactions before initiating a settlement.
3. Currency Conversion: If the transaction involves currency conversion, this can extend the settlement time.
4. Risk and Compliance Checks: Additional verification may be required for high-risk transactions or unusual activity.
5. Partner Bank Delays: The receiving bank might also contribute to delays.
🔄 Settlement Delay Example:
• A customer makes a purchase via a credit card on Monday.
• Adyen processes the transaction and holds the funds temporarily.
• Depending on the agreed settlement cycle (e.g., daily, weekly), the funds might not appear in the merchant’s account until Wednesday or later.
📝 Managing Settlement Delays:
• Check Your Settlement Frequency: Adyen allows merchants to set the frequency of payouts (daily, weekly, monthly).
• Monitor Payment Methods: Some payment methods (like ACH or SEPA) naturally take longer to settle.
• Review Your Agreement: Settlement timelines may vary based on your contract with Adyen.
• Contact Support: If there’s an unexpected delay, Adyen’s support can help identify the cause.