Settle funds

When you accept payments through Adyen, the funds are processed through your stores and arrive in your merchants accounts. After deducting the fees incurred on these payments, the remaining available funds are then settled to your balance platform. This page explains the flow of funds from your merchant account to your balance platform.

Flow of funds

1. Payments are processed through your stores and arrive in your merchant account in a pending state. After the configured settlement delay (T+2 by default), these funds become available in your merchant account.
2. Adyen deducts the fees incurred on these payments from your merchant account.
3. Adyen aggregates the remaining funds into payable batches based on your configured settlement frequency to the balance platform. For example, if you settle every hour, a payable batch is created every hour. You can have multiple payable batches per day.
4. For each payable batch, you can generate a Settlement Details Report. This report includes the transactions, fees, refunds, chargebacks, and other balance modifications for that batch.
5. Adyen settles the funds from each payable batch to your balance platform as a single internal transfer.
6. In the balance platform, the funds get settled in the balance account configured for that merchant account.

In the following example, you have a hotel called HotelChainLLC with 2 hotel branches in Europe:

• HotelBranch_AMS (Amsterdam) which accepts payments in EUR.
• HotelBranch_STO (Stockholm) which accepts payments in SEK.

The following diagram shows the flow of funds from your customer to your balance accounts:

1. Your hotel guests (customers) pay:

   1. Hotel guest A pays EUR 200.00 at the Amsterdam branch.
   2. Hotel guest B pays EUR 100.00 at the Amsterdam branch.
   3. Hotel guest C pays SEK 400.00 at the Stockholm branch

2. After the settlement delay of T+2 days, these funds become available in their respective merchant accounts:

   1. EUR 300.00 becomes available in HotelChain_EUR.
   2. EUR 400.00 becomes available in HotelChain_SEK.

3. From your merchant accounts, Adyen deducts the fees for these payments.

   1. From HotelChain_EUR, Adyen deducts:
      1. EUR 10.00 in fees for the payment from Hotel guest A
      2. EUR 5.00 in fees for the payment from Hotel guest B
   2. From HotelChain_SEK, Adyen deducts:
      1. SEK 20.00 in fees for the payment from Hotel guest C

4. The remaining funds are aggregated into settlement batches for each merchant account, and booked to the balance platform:

   1. The settlement batch for HotelChain_EUR contains EUR 285.00, which is the net amount (after fees) from the payments of Hotel guest A and Hotel guest B.
   2. The settlement batch for HotelChain_SEK contains SEK 380.00, which is the net amount (after fees) from the payment of Hotel guest C.

5. The funds from each settlement batch are settled into the balance account configured for the merchant account:

   1. EUR 285.00 is settled in the balance account configured for HotelChain_EUR.
   2. SEK 380.00 is settled in the balance account configured for HotelChain_SEK.