What is the difference between gross and net settlement?

There are two ways we can settle funds into your merchant account: net settlement and gross settlement. The settlement method applied to your account determines whether processing fees are deducted before funds are paid to you or charged separately.

Net settlement

With net settlement, applicable processing fees and charges are deducted from the transaction value before the remaining funds are paid into your merchant account.

This means the amount you receive is the net settlement amount. Other fees, adjustments, reserves, refunds or chargebacks may still be applied or billed separately where applicable.

Key points:

• Applicable processing fees are deducted before settlement.
• The settlement amount paid to you is lower than the gross transaction value.
• You can review settlement and fee information in the Cashflows Portal.
• Processing fees are not deducted from each settlement before payment.
• Fees and charges must be tracked and reconciled separately.
• You may receive a separate invoice or account charge for applicable fees.
• Gross settlement can make the gross transaction value easier to compare with sales records, but it requires separate fee reconciliation.

Gross settlement

With gross settlement, the gross transaction value is paid into your merchant account before processing fees are deducted. Processing fees are then charged separately, subject to the terms of your agreement.

The amount paid may still be affected by refunds, chargebacks, reserves and other applicable adjustments.

Key points:

Which settlement method applies to me?

Your settlement method is determined by your agreement with Cashflows. You can review your settlement information in the Cashflows Portal or contact Customer Support if you need help confirming which method applies to your account.