82ad790e_and_Merchant_Services_Glossary__Definition
[Term] Settlement [Definition] 
The process by which the processor, working on behalf of the acquirer, debits the issuer for a transaction and credits the acquirer, and where the acquirer then credits the merchant. Settlement also involves payment to the card brands, calculating discount and qualifying a transaction for the appropriate interchange. Other aspects include exception processing, returns and disputes.
Credit Card Processing and Merchant Services Glossary
Definition