Default icon

Pass-through settlement

Learn how the pass-through settlement works.

With pass-through settlement, sales funds are settled according to the timelines of schemes and payment methods involved in the transaction. This means the funds from a sales day could be settled in more than one business day.

The pass-through settlement model does not allow for reconciliation based on day totals. To reconcile payments with this model, you must track the payments in your accounting reports.

How it works

Sales are assigned to a settlement batch as soon as the schemes or payment methods send the funds to Adyen. After the settlement batch closes, Adyen settles the funds on the next business day.

For example, let's consider a balance account on pass-through settlement with a daily settlement frequency. The sales from Monday, January 1 are settled in separate batches over the subsequent days, from January 2 to January 7. Each settlement therefore contains funds from several sales days. The following image illustrates this example.

Adjustments to the settlement

Before settlement, Adyen adds or subtracts refunds, chargebacks, and other adjustments from the funds in the settlement batch. These adjustments are included as they occur, which can be in a different date from the sales day.

Settlement frequency

Adyen settles any available funds daily on working days (Monday to Friday), excluding bank holidays. The settlement delay increases when a bank holiday falls on the capture day.

Configure pass-through settlement

Pass-through settlement is enabled by default on a balance account. If you have configured sales day settlement and want to revert to pass-through settlement, you can update the platformPaymentConfiguration object in a PATCH /balanceAccounts/{id} request.

The following code sample shows how to make this request.

The following table shows the parameters related to the pass-through settlement configuration:

Parameter Type Description
platformPaymentConfiguration Object Contains key-value pairs to the configure the settlement model in a balance account.
salesDayClosingTime String Specifies at what time a sales day ends.
Possible values: Time in HH:MM format. HH ranges from 00 to 07 and MM must be 00.
Default value: "00:00".
settlementDelayDays Integer Set this value to null to enable pass-through settlement. Setting this value to an integer enables sales day settlement.

See also