3 minute read
Payment acceptance should be simple. Take a payment, get paid, right? Well, it’s not always that simple. In the payments world, your business getting paid is called ‘settlement.’ But settlement is not all equal. Did you know, for example, there are two types of settlement options for the payments you accept? One is gross settlement and one is net settlement.
While both move payments to your account so you get paid, both differ vastly in terms of transparency, speed and how they support your reconciliation process.
- Gross settlement deposits your payments and charges your fees separately.
- Net settlement deducts your fees directly from your payments before you receive the funds.
For Global Payments UK, the majority of our customers prefer gross settlement for the important benefits that it provides your business.
- Improved cash flow: As fees are charged separately, you don’t need to pay processing fees until your next invoice.
- Improved visibility on your fees: Many of our merchants also enjoy gross settlement as it simplifies reconciliation. Typically, it’s easier to align your total payments accepted with the deposited sum in your bank account. So, if your business processes a card transaction for £200, then £200 is credited to your nominated business account (we don’t deduct the merchant services fee at source). Which makes reconciliation simple for your business.
Global Payments is at hand to accept payments simply — online, in person and on the go. Plus, we help you save time and money through efficient payment settlement solutions. Contact our sales team for more information.
