How it works

PXP's Settlement service automatically manages the complete process of receiving your payment funds. When customers pay you through PXP, the system calculates fees, groups transactions, and transfers money to your bank account according to your configured schedule.

• Predictable payments: Know exactly when funds will arrive in your account.
• Automatic fee handling: All fees are calculated and deducted automatically, no surprise invoices.
• Real-time visibility: Track pending funds and settlement status in your dashboard.
• Flexible scheduling: Choose daily, weekly, or monthly settlement cycles.
• Comprehensive reporting: Detailed breakdowns for easy reconciliation.

Whether you process thousands of transactions daily or operate a smaller business with monthly settlements, PXP Settlement provides the transparency and control you need to manage your cash flow effectively.

Your settlement cycle determines how often you receive payments from PXP. They control when transactions are grouped together, invoiced, and paid out to your bank account.

Daily settlement provides the fastest access to your funds. Every business day, transactions are totaled at cutoff time (default: midnight GMT), your daily balance is calculated, and an invoice is created. A clearing payout is sent to your bank according to your settlement model.

Settlement models (T+N) determine when funds arrive after the settlement day:

• T+1 (after one business day): Funds from Monday are paid on Wednesday, Tuesday on Thursday, etc.
• T+2 (After two business days): Funds from Monday are paid on Thursday, Tuesday on Friday, etc.
• T+3 (After three business days): Funds from Monday are paid on Friday, Tuesday on Monday, etc.

Weekly settlement groups all transactions from Monday through Sunday into one settlement per week. Daily balances are calculated and stored throughout the week, then combined at the end of the week (typically Sunday after cutoff) into a single invoice and payout.

Monthly settlement groups all transactions from a calendar month into one settlement per month. Daily balances are calculated and stored throughout the month, then combined at month-end (last day after cutoff) into a single invoice and payout.

Settlement calculations run 24/7, but bank submissions only occur on business days (Monday-Friday). If a settlement falls on a weekend or bank holiday, the invoice is generated on schedule, but the bank payout is delayed until the next business day.

To change your settlement cycle, contact your PXP account manager. Changes take effect at period boundaries to avoid partial settlements.

Settlement profiles are the foundation of your settlement configuration. They define when your business day ends (cutoff time), which sites are invoiced and settled together (entity coverage), and how funds are routed to your bank accounts.

Each settlement profile defines:

• Cutoff time: When your business day ends and daily balance calculation begins. Default is midnight GMT, but you can adjust by hour increments (±5 hours).
• Entity coverage: Which sites use this profile. Sites within the same profile are invoiced and settled together. Options include all sites within your merchant account, or one or more specific sites.
• Settlement routing: How different transaction currencies are converted and directed to your bank accounts. Default routing settles "like for like" (GBP to GBP accounts, EUR to EUR accounts), with custom exception rules available.

When settlement is first enabled, PXP automatically creates a default settlement profile with all sites selected, cutoff at midnight, and like-for-like currency routing to your primary bank account.

Most merchants use one profile covering all their sites with combined settlements. Multiple profiles are useful when you need to:

• Send different sites' funds to different bank accounts.
• Use different cutoff times for different operations.
• Separate retail from online business.

Two types of fees are automatically deducted from your settlements:

• Blended card rate fees
• Gateway fees

Blended card rate fees are charged when money moves through the card schemes for purchases, captures, refunds, and payouts.

Your blended rate varies based on factors like card brand, funding source, card owner type, and regional classification.

Gateway fees are charged for each transaction attempt, whether successful or declined. These cover transaction routing, authorisation requests, security checks, and infrastructure costs.

Only gateway fees for transactions where PXP is the acquirer are automatically deducted from your net settlement. This includes:

• Card transaction authorisations (with PXP as the acquirer)
• Chargebacks
• Representments
• Second chargebacks

Gateway fees for the following aren't deducted from settlement and are instead invoiced separately:

• Transactions where PXP isn't the acquirer (e.g., AIB, PayPal)
• Scheme tokenisation services
• Risk screening services
• 3D Secure (3DS) authentication
• POS service fees
• Other non-card services

Every day at your cutoff time:

1. Transactions are totaled.
2. Fees are calculated.
3. Rolling reserves are applied, if configured.
4. The daily balance is created.

Some merchants have rolling reserves — a percentage of funds temporarily held to cover potential liabilities like chargebacks and disputes. Funds are automatically released after a specified retention period (e.g., 30, 60, or 90 days).

Reserves are calculated daily on capture transactions. Each day a percentage (e.g., 5%, 10%) is held from your captures, then released after the retention period. This creates a rolling buffer where new reserves are held while old ones release.

If refunds, fees, or chargebacks exceed captures, you'll have a negative balance:

• An invoice is created showing the negative amount.
• No payout is issued.
• The amount carries forward and is automatically deducted from the next positive period if the balance is sufficient.

Transactions are settled "like for like" when possible - GBP to GBP accounts, EUR to EUR accounts. Transactions in other currencies are converted using ECB rates.

You can create custom routing rules for specific currencies to control conversion and direct funds to different bank accounts.

Once approved, your settlement payout is sent to our clearing bank and processed to your account:

• Faster Payments (UK): Within hours, same business day
• CHAPS (UK): Same business day
• SWIFT (International): 1-3 business days

Match your bank statement using the reference number, amount, and date shown in your clearing payout report.

PXP provides several reports to help you understand and reconcile your settlements:

• Invoice report (PDF): Summary of each settlement period
• Invoice line-item report (CSV): Transaction-level detail
• Clearing payout line-item report (CSV): Bank reconciliation report
• Monthly summary report (PDF): Fee analysis and statistics

Reports are delivered via email or webhook and available in your dashboard.

The My finances dashboard provides real-time visibility into your settlement activity, including pending balances, transaction breakdowns, rolling reserves, and payment history.

Your merchant account state affects settlement processing:

• Active: Settlement runs as configured.
• Suspended: Settlement continues to run normally even though transaction processing is temporarily disabled.
• Closed: All settlement processes stop permanently. This requires all pending settlements and rolling reserves to be cleared first.

Now that you understand the basics of how settlement works, explore these detailed guides:

• Settlement profiles: Configure cutoffs, routing, and thresholds.
• Reports: Understand your settlement reports and reconciliation.
• My finances dashboard: Monitor your settlements and track reserves.
• Getting started: Get your first settlement configured.