# 

## What is batch settlement

Batch settlement is the process of transferring funds from authorized transactions to the merchant's bank account. Rather than settling each transaction individually,Reefpay groups transactions into **batches** that are submitted to the processor as a single unit.

Batch settlement
## How batches work

### Accumulation

As transactions are authorized throughout the business day, they are added to the current open batch. Each authorized transaction receives a `batch_id` in the response.

```json
{
  "id": "TRANSACTION-01JMRSPCK7XVNP3KS8F2W4T6Y",
  "type": "sale",
  "transaction_state": "authorized",
  "batch_id": "BATCH-01JMRSPCK7XVNP3KS8F2W4T6Y",
  "amount": 1999
}
```

### Closure

When the batch closes, all transactions in the batch are submitted to the processor for clearing. Batch closure can happen in two ways:

* **Automatic**: The batch closes on a schedule (typically at the end of each business day).
* **Manual**: A merchant or reseller closes the batch explicitly through the API.


### Clearing and settlement

After the batch closes:

1. The processor submits the batch to the card network (for card transactions) or ACH network (for bank account transactions).
2. The card network coordinates fund transfers between the issuing bank and the acquiring bank.
3. The acquiring bank deposits the net settlement amount (transaction total minus fees) into the merchant's account.


Settlement typically completes within 1–2 business days for card transactions and 2–3 business days for ACH transactions.

## Batch API endpoints

| Endpoint | Method | Description |
|  --- | --- | --- |
| `/v1/batches` | GET | List batches with transaction counts and totals |
| `/v1/batches/status` | PUT | Update batch status (close an open batch) |


### Listing batches

Retrieve batch history with `GET /v1/batches`.

```shell
curl -X GET \
  https://api.dev.paradisegateway.net/v1/batches \
  -H "APIKEY: YOUR-API-KEY"
```

### Closing a batch manually

Close the current open batch by updating its status with `PUT /v1/batches/status`.

```shell
curl -X PUT \
  https://api.dev.paradisegateway.net/v1/batches/status \
  -H "Content-Type: application/json" \
  -H "APIKEY: YOUR-API-KEY" \
  -d '{
    "status": "closed"
  }'
```

## What goes into a batch

A batch includes all transactions that are in a capturable state when the batch closes.

| Transaction type | Included in batch |
|  --- | --- |
| `sale` (authorized) | Yes |
| `auth` (captured) | Yes |
| `cancel` (voided before close) | Removed from batch |
| `refund` | Included as a credit |
| `payment` (authorized) | Yes |
| `payout` (authorized) | Yes |


Canceled (voided) transactions are removed from the batch before submission. Refunds are included as negative amounts, reducing the net settlement total.

## Settlement timeline

| Event | Transactions |
| :--------| :---------| :-----------|
| Transaction authorized | Immediate | Immediate |
| Batch closes | End of business day (or manual) | End of business day (or manual) |
| Processor submits to network | Same day or next business day | Next business day |
| Funds deposited to merchant | 1–2 business days after closure | 2–3 business days after closure |

## Reconciliation

Reconcile your records againstReefpay's batch data to verify that all expected transactions are accounted for.

### Recommended approach

1. **List batches** for the date range using `GET /v1/batches`.
2. **Compare transaction counts** and amounts against your internal records.
3. **List transactions** within a batch using `GET /v1/transactions` filtered by `batch_id`.
4. **Check for discrepancies**: missing transactions, unexpected cancels, or amount mismatches.
5. **Log `correlation_id` values** for any transactions that require investigation.


## Net settlement calculation

The amount deposited to the merchant's account is the net of all transactions in the batch, minus processor and interchange fees.

```text
Net settlement = (Sales + Captures) − Refunds − Fees
```

Fees include interchange fees (paid to the issuing bank), assessment fees (paid to the card network), and processor markup. These are deducted before the funds reach the merchant's account.

For more information about fee structures, see [About card networks and interchange](/docs/concepts/payment-industry/networks-and-interchange).

## Further reading

* [About the transaction lifecycle](/docs/concepts/transactions/transaction-lifecycle)
* [About cancels and refunds](/docs/concepts/transactions/cancels-and-refunds)
* [Closing a batch manually](/docs/how-tos/manage-transactions/close-batch-manually)
* [About card networks and interchange](/docs/concepts/payment-industry/networks-and-interchange)