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settlement pending

Settlement pending is the status of a payment for which the final transfer of funds between the payer's and payee's financial institutions has been initiated but has not yet been completed.

In plain English

This means the money-moving process between the two financial institutions is already underway. The payment has reached the stage where the final transfer of funds has started, but that transfer is not finished yet.

In context

Here, settlement pending labels a captured payment whose final transfer of funds between the payer's and payee's financial institutions has begun and is still not complete.

Situation
Reading card, bank, wallet, authorization, decline, pending, and settlement states
What it communicates
labels a captured payment whose settlement stage is still open.

Meaning limits

By itself, this status does not say when the transfer will finish.

Examples

“After the payment was captured, it was settlement pending while the two banks were still completing the fund transfer.”

Core meaning

“A captured payment can remain settlement pending overnight before the transfer between the payer's bank and the payee's bank is complete.”

In context