Merchant Accounts and Settlement Flows

‍

A merchant account is a bank account that allows businesses to accept card payments. When a customer pays with a card, funds are authorized, processed, and eventually deposited into the merchant account through a series of settlement flows. These flows involve the merchant, acquirer, card network, and issuer.

‍

After authorization, funds move from the issuer to the acquirer, minus fees such as interchange, network fees, and processing costs. The acquirer then deposits the net amount into the merchant account. Settlement timelines can vary depending on card type, currency, and payment method, with cross-border payments typically taking longer.

‍

Monavate provides businesses with tools to track these settlement flows in real time. By integrating transaction processing, reporting, and reconciliation, Monavate ensures transparency and control for merchants. This allows businesses to manage cash flow efficiently, identify issues quickly, and optimize payment acceptance while maintaining compliance with network and regulatory standards.

‍