Settlement

Settlement is the process of transferring funds from Credo to your registered bank account after a successful transaction. This guide covers how settlements work, timing, fee calculations, and the different settlement types available.

How settlement works

When a customer pays you through Credo, the funds don't arrive in your bank account immediately. Here's the typical flow:

Settlement calculation

The amount you receive depends on who bears the transaction fee:

Transaction Amount:     ₦10,000.00
Transaction Fee:        ₦200.00 (paid by customer)
Settlement Amount:      ₦10,000.00

Transaction Amount:     ₦10,000.00
Transaction Fee:        ₦200.00 (deducted)
Settlement Amount:      ₦9,800.00

Set the fee bearer using the bearer field when initializing transactions:

• 0 - Customer bears the fee (default)
• 1 - Merchant bears the fee

Settlement types

Credo offers three settlement modes to fit different business needs:

Settlement account

Your settlement account is the bank account where funds are deposited. You can view and update this in your Credo dashboard:

1. Go to Settings → Business Information
2. Under Settlement Account, add or edit your bank details
3. The account must match your registered business name

Tracking settlements

Monitor your settlements in the Credo dashboard:

• Transactions page - View individual transaction settlement status
• Settlements page - See batch settlements and totals
• Reports - Download detailed settlement reports for reconciliation

Settlement status codes

Pending settlements

If a settlement remains pending for an extended period:

1. Check that your bank account details are correct
2. Ensure the account is active and can receive transfers
3. Verify the account name matches your business registration
4. Contact support if the issue persists

Pending settlements remain in queue until the issue is resolved or you update your bank account details.

Webhook notifications

Get real-time updates on settlement events:

{
  "event": "transaction.settlement.success",
  "data": {
    "transRef": "cI9H00N2AB02Qb0s69Mj",
    "businessRef": "PL1683423455304ATm",
    "settlementAmount": 985.0,
    "transactionDate": "May 7, 2023, 1:37:53 AM",
    "status": 5
  }
}

Configure webhooks in Settings → Webhooks to receive these notifications.

Best practices

• Reconcile regularly: Match settlements in your dashboard with deposits in your bank account. Use the settlement reference numbers for easy tracking.
• Keep bank details current: Update your settlement account promptly if you switch banks. Incorrect account details can delay settlements.
• Monitor for pending settlements: Check your dashboard for pending settlements and ensure your bank details are correct to avoid delays.
• Understand your fees: Know your transaction fees and whether you're using customer-bears-fee or merchant-bears-fee mode. This affects your settlement amounts.

Next steps