The gap between the settlement fund displayed in the Afterpay business hub and the amount received in your bank account may arise due to several factors. Here's a breakdown:
1. Reserves Held by Afterpay
- Afterpay may hold a reserve as part of its risk management process. This reserve is a percentage of your transactions retained temporarily to cover potential chargebacks or refunds.
- You can find more details about reserves in Afterpay's guide: How does a reserve work with settlements?.
2. Refunds and Adjustments
- If you’ve processed refunds recently, the refund amounts are deducted from your settlements. This can reduce the total payout transferred to your account.
3. Processing Fees
- Afterpay deducts transaction processing fees from your settlements before disbursing the remaining amount to your bank account. These fees are detailed in your merchant agreement.
4. Negative Balances
- If your account has a negative balance due to previous refunds exceeding sales, Afterpay offsets this amount against future settlements, reducing the funds you receive.
5. Settlement Periods
- The settlement period defined in your merchant agreement (e.g., 1-5 business days) can create timing differences between when transactions are processed and when funds are disbursed.
6. Bank Processing Delays
- Even after Afterpay initiates a payout, your bank may take 1-2 business days to process and credit the funds to your account.
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