Credit card settlement is the final stage of a credit card transaction where funds are transferred from the cardholder’s issuing bank to the merchant’s acquiring bank. This process involves multiple parties, including the acquiring bank, issuing bank, and card networks, who reconcile transaction details. It ensures that merchants receive payment for goods or services after authorization and clearing stages are complete. The settlement typically occurs in batches, often daily, reflecting a deferred transfer of value.
Context
In the context of digital assets, credit card settlement provides a traditional financial benchmark against which crypto payment speeds are often compared. While traditional settlement can take days, the discussion in crypto news frequently centers on blockchain solutions offering faster, more transparent, and potentially lower-cost alternatives. The ongoing evolution of payment systems considers how traditional credit rails might coexist or merge with digital asset payment infrastructures.
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