Nagesh Koritala

Learn Anatomy of a Checkout

Lesson 6 of 13

Clearing and settlement.

When money actually moves between banks, and the layers of fees inside every card sale.

By Nagesh Koritala 7 min read Last verified: November 2026

  1. Lesson 1: Improve the checkout
  2. Lesson 2: The checkout flow
  3. Lesson 3: Authorization
  4. Lesson 4: Payment states
  5. Lesson 5: Capture
  6. Lesson 6: Clearing and settlement (this lesson)
  7. Lesson 7: Cash capture
  8. Lesson 8: Returns and refunds
  9. Lesson 9: Disputes
  10. Lesson 10: Tokens and stored credentials
  11. Lesson 11: Transaction types
  12. Lesson 12: Complete reference
  13. Lesson 13: Payments compliance
All 16 pages in this guide
  1. Improve the checkout
  2. The checkout flow
  3. Authorization
  4. Payment states
  5. Capture
  6. Clearing and settlement
  7. Cash capture
  8. Returns and refunds
  9. Disputes
  10. Tokens and stored credentials
  11. Transaction types
  12. Complete reference
  13. Payments compliance
  14. Follow one order
  15. Where it breaks
  16. Payments dictionary

Capture is a request. Clearing delivers that request to the customer's bank. Settlement is when the banks pay each other. These steps run in batches, often once a day, which is why there is always a gap between “charged” and “deposited.”

The merchant receives less than the sale amount. The difference is the cost of acceptance, and it has three layers. Play with the example below to see how they stack.

Where a sale's fees goExample rates, not real pricing

Real interchange depends on card type (debit, credit, rewards, commercial), channel, merchant category, region, and regulation. In the US, debit interchange for issuers with $10 billion or more in assets has been capped under Regulation II since 2011. In October 2026 a federal appeals court upheld a ruling that struck down the current 21-cent cap and sent it back to the Federal Reserve, so check the latest status. Some merchants pay a single blended rate and never see these layers; the layers still exist underneath.

Sources for this guide

Card network rules change. Time limits, fees, and authorization windows here reflect published rules and provider documentation as of late 2026; confirm details with your processor before you build against them.

Sources

Your progress stays on this device.

Next: Lesson 7

Cash capture.

How finance proves every order was paid: matching deposits to orders, and working the exceptions.

Start lesson 7All lessons

Questions about payments? Email me. I read every note.

Cash capture: orders on one side, bank deposits on the other, matched line by line. OrdersDeposits match every one