Find out the different ways we settle into your account
There are two ways we settle funds into your Cashflows account, gross settlement, and net settlement. This article will help you understand the differences.
Net settlement deducts fees and charges from the transaction amount before transferring to your account. You receive the net amount of each transaction, so there is no need to pay an invoice at the end of the month for processing fees.
Benefits of Net Settlement:
- You don't need to keep track of the fees and charges associated with payment processing, as they are automatically deducted from the transaction amount.
- You can access details of all fees and charges associated with payment processing activity through your Cashflows online portal.
Gross settlement transfers to you the full amount of each transaction processed, with no deductions for processing fees. We then generate an end-of-month invoice for any processing fees generated in the month.
This means you receive the total transaction amount upfront but need to keep track of the processing fees associated and pay them separately at the end of each month.
Benefits of Gross Settlement:
- You receive the full payment amount upfront, which can help with cash flow management and revenue forecasting.
- It can simplify accounting and bookkeeping since you don't need to track this.