What is Settlement?
Also known as: Payout
Settlement is the transfer of collected payment money from your payment gateway into your bank account, usually a few working days after the sale.
Indian gateways commonly settle on a T+2 or T+3 cycle — two or three working days after the transaction — with the processing fee already deducted. Holidays extend this.
The gap between order date and settlement date is a genuine cash-flow constraint that catches out growing sellers. If you are buying stock weekly but receiving money on a three-day lag, you need working capital to bridge it.