A Settlement is a logical construct representing a collection (i.e. batch) of Transfers that are intended to be paid out to a specific Merchant.
Using Dynamic Payouts, Finix is able to:
- Pay Merchants
- Debit For the Benefit Of (FBO) accounts
- Credit For the Benefit Of (FBO) accounts
- Send revenue collected to your Operating Account
We handle Dynamic Payouts to the FBO account through Settlements.
Each Settlement is comprised of transfers that meet the following criteria:
- state = ‘SUCCEEDED’
- The Transfer has not been previously settled out
e.g. If a merchant has a Transfer with state = ‘PENDING’ it will not be included in the batch settlement.
Settlements will also include any refunded Transfers as a deduction and are calculated using the following equation.
Total Amount - Total Fees = Net Amount
Where Net Amount is the final value that is deposited into your merchant’s bank account.