Configuring Settlement Account

Settlement for merchants refers to the process of reconciling and finalizing the transactions between Finmo and the merchants using its services. This involves ensuring that all payments collected on behalf of the merchants are accurately accounted for and transferred to their accounts. Here’s a detailed look at the process:

Key Steps in Merchant Balance Settlement in Fintech:

• Reconciliation: Finmo performs regular reconciliations to match its internal transaction records with those reported by payment gateways, banks, and other financial institutions.
• Discrepancy Resolution: Any discrepancies between the recorded transactions and the reported transactions are investigated and resolved.
• Service Fees: Finmo may deduct service fees, transaction fees, or any other applicable charges from the total amount before settling the balance with the merchant.

Net Settlement Calculation:

• Net Amount: The net amount owed to the merchant is calculated by subtracting any fees, refunds, or chargebacks from the total transaction amount.
• Payout Schedule: Depending on the agreement, settlements can be weekly or monthly.

Funds Transfer:

• Payout Execution: The net amount is transferred to the merchant’s bank account configured. The timeline for the transaction to reach depends on the available payment methods for the currency.
• Notification: Merchants are notified of the settlement, often with detailed statements showing the breakdown of transactions, fees, and the final settled amount.