Settlement

Overview

Settlement: After a transaction is completed, the funds need to be settled and transferred to the merchant's account. The settlement process ensures that the funds held during pre-authorization are captured and moved from the customer's bank to the merchant's bank.

The settlement operation is crucial for finalizing the transaction and ensuring the merchant receives the payment. This process is commonly performed at the end of the business day or after specific transactions to update the merchant’s account.

Processing Settlement with POS and Microservices

This section outlines the steps involved in processing a settlement using an integrated approach with a Point of Sale (POS) system and microservices:

Step 1: POS Initiates the Settlement Request Using API

1. End of Day/Transaction Interaction: The process begins when the POS terminal initiates a settlement request, typically at the end of the business day or after specific transactions.
2. API Request: The POS system sends a POST request via an API to the payment processing service to start the settlement process.

Step 2: Microservice Validates and Prepares the Request

1. Request Validation: The microservice receives the settlement intent from the POS system.
2. Validation Process: It conducts a thorough validation of the received parameters to ensure accuracy and validity.

Step 3: Microservice Creates a Settlement Request to Terminal

1. Validated Request: Once the settlement intent is validated, the microservice prepares a settlement request to be sent to the connected payment terminal.
2. Request Details: This request includes comprehensive details about the transactions to be settled, ensuring a smooth settlement process.

Step 4: Terminal Processes the Settlement

1. Settlement Completion: The payment terminal processes the settlement request, capturing the held funds and transferring them to the merchant's account.
2. Order Details: After the settlement operation is completed, relevant order details are presented, confirming the successful settlement.

This process ensures that the funds are correctly transferred and the transaction is finalized, providing both the customer and the merchant with a smooth and secure payment experience.