Byte 4 - Credit Card - Clearing & Settlement

This video is about Credit Card - Clearing & Settlement. We cover,
- What is Clearing
- How is a Clearing file generated? – Parties and Process
- Examples of various schemes
- What is Settlement?

[dcpillay]

Hi, thank you for creating this learning channel. it is great.
Would it be possible for you to do a video on the steps an issuer would follow when doing end to end recon

[zenfitteam]

Very good.. it would be good if you could Chargebacks that are raised by customer and how are they settled if proven

[vinodhshyvin]

Hi sir,
Awesome explanation. I do have one doubt for a POS settlement the merchant batchs / captures the txn. Was wondering how it happens for a Ecom txn

[tome]

Thank you for posting this video. Does the issuing bank deduct the interchange amount from the reported transaction during settlement? If so, what fields on the settlement file format provide that information? Also, where can you get a copy of the settlement file format?

[ekanshboddu]

Many Thanks Sathish Sir.
All your Videos are very good. Just one feedback on this. In the clearing life cycle, 2nd Chargeback is now been decommissioned recently from July 2020 by Mastercard and 2 years ago by VISA. Flows are little different for VISA and Mastercard but essentially after 2nd Presentment it is Pre-arb and then Arb.

[harshithmanepalli]

Why in merchant account will not credit amount directly after performing transactions why amount will be credited in acquirer bank and why merchant need to do settlement?

[subramanip]

Great info on layman terms. Would you please include more technical videos? Like how the clearing and settlement works, i meant what files are shared, by issuer for settlement etc., Also please advise how eod batch is handled?