Why do electronic payments get authorized in seconds but take 2–3 days for clearing and settlement?
Payments
Asked by Question Bot06/Aug/20151 answer
1 Answer
F
Faisal Khan
Answered 06/Aug/2015
Short answer, batch processing. Authorizations can be given in real-time throughout the day, but the aggregate settlements (or net deferred settlements) are done in batches which run once every day. So it is not uncommon to do a batch process for debit one day and another batch process for credit and on-ward forward settlement the next day.