A Guide to Same-Day Settlement Payment Gateways and How It Works


Nowadays, everyone is constantly searching for the simplest, most practical way to accomplish a task. This change is also evident in payments, including those for online purchases and game tokens.  Consumers expect a hassle-free online shopping experience, and e-commerce companies are expected to provide it.

Instant settlement payment gateways have become increasingly important for merchants as the purchasing and selling of goods and services online has expanded. They serve as a go-between for buyers and sellers and manage the payments related to the transactions.

Settlement refers to the transaction where a trader receives money from their end customers in exchange for a given product. There are many factors that are associated with the settlement of a transaction from the customer to the merchant.

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    What is the ideal settlement period?

    Payment gateways are in charges of transmitting funds to the seller when a customer makes a payment to an online merchant while placing an order. It’s possible that you’ve heard from merchants that use various payment gateways that settlements take longer than normal.

    Simply speaking, a settlement period is the time lag that occurs between the customer making the payment and the merchant receiving the payment. The typical settlement period for most payment service providers is three to five working days. Some of these transactions happen in real-time and some may take days or even weeks to be completed.

    When choosing the ideal payment gateway for your small business, make sure you opt for a service that allows same-day settlements, as most businesses depend on timely settlements to manage their business effectively.

    What is the Same-day Settlement?

    In layman’s terms, same-day settlement occurs when the money from the customer is transferred to the merchant on the same day, without any delay.

     Real-time transactions involve only two parties to the transaction. However, in the case of online payments, there is one other party involved – the payment service gateway. The amount is immediately transferred to the merchant without any waiting time, which might lead to a drastic increase in the time taken to transfer the money from one account to another.

    This is where NTT DATA Payment Services’ Same Day Settlement service comes into play — same-day settlements are ensured, taking away the hassle of having to constantly follow up about where your money stands.

    How Does same-day Settlement Work?

    The process of same-day settlements can be explained through the following steps. The funds are usually transferred in a series of batches. The more frequent these transactions are, the more functional the system is.

    • When the sale is finalized, the customer makes the payment. It is usually done using some kind of gateway at a point of sale.
    • This payment is then passed on to the third-party payment processor.
    • The payment processor then transfers the details of the transaction to the financial institution.
    • After the deduction of certain fees, the merchant bank deposits the transaction amount to the business bank account.
    • Finally, the financial institutions debit the customers’ accounts and credit the merchant’s bank account.

    How Is It Useful for Merchants?

    A delay in payments can cause many issues for your business. The problem lies in the time taken to transfer the payment from the customer’s account to the merchant’s account.

    This puts a dent in the working capital of the business. This can cause a lot of trouble for smaller merchants, who need to stock their inventories and deal with day-to-day expenses. Same-day settlements are more efficient, and they help merchants run their businesses efficiently.

    How Does same-day Settlement Gateway Help Your Business?

    There are a couple of ways that a same-day settlement gateway helps your business,

    • As your settlements are made almost immediately, you will be able to stock up on inventory and have an efficient working capital.
    • You can settle your other payments, like, for example, wholesale merchants – in advance or on time.
    • You will always have liquid cash to deal with uncertain requirements.


    A business must be able to receive payments on time. However, it’s crucial that each company assess its capital requirements and choose the appropriate type of settlement after doing its due diligence.

    NTT DATA Payment Services provides seamless and secure payment solutions for your business. Their services encompass online payment gateways, card swipe machines, merchant mobile applications, IVR, as well as the ever-improving white label payment gateways, all in one place. Check out the website at NTT DATA Payment Services.


    1. Which payment gateway gives instant settlement?

    NTT DATA Payment Servicesprovides you with the opportunity to choose your settlement cycle as per your business’ requirements. This includes seamless same-day settlement solutions for your business.

    2. How does the same-day settlement work?

    NTT DATA Payment Services’ same-day settlement feature allows you to settle your payments instantly by making payments in a series of batches. 

    3. What is a same-day settlement?

    NTT DATA Payment Services offers a processing service called Same Day Settlement that enables customers to receive their payments from transactions immediately, as opposed to having to wait for days.

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