Payments Settlement

Any transaction is two-legged:

1. First leg: Payment from the customer to the aggregator. Funds to be remitted in nodal account with the same day(Tp) or within a day(Tp+1).
2. Second leg: Settlement of the transaction amount to the merchant by the aggregator. Standard settlement time is Tp+2 days.

maximum total days: Tp+3 days

Before we jump on to understand more about settlements, let us clear a confusion about the difference escrow account and nodal account. The two are often interchanged, but here is the difference:

Nodal account: Accounts are special internal banks mandated