Card Settlement

Definition ∞ Card settlement is the final transfer of funds from a customer’s bank to a merchant’s bank after a card transaction. This process follows authorization and clearing, representing the irreversible movement of money between financial institutions involved in a payment. In the context of digital assets, card settlement can involve converting cryptocurrency to fiat currency to complete a merchant payment. The efficiency and speed of this process are vital for liquidity management and operational costs for businesses accepting digital payments.
Context ∞ The speed and cost of card settlement are critical factors for merchants and payment processors in both traditional and crypto-enabled commerce. Innovations in blockchain technology are exploring ways to accelerate this process, potentially bypassing legacy systems and reducing intermediary fees. News regarding advancements in real-time settlement or new integrations between crypto platforms and payment networks remains a significant area of interest.