Why do electronic payments get authorized in seconds but take 2–3 days for clearing and settlement?

Asked Aug 6, 2015· 1 answer
Faisal KhanAnswered Aug 6, 2015
Short answer, batch processing. Authorizations can be given in real-time throughout the day, but the aggregate settlements (or net deferred settlements) are done in batches which run once every day. So it is not uncommon to do a batch process for debit one day and another batch process for credit and on-ward forward settlement the next day.
Payment ClearingPayment InfrastructureDeferred Net SettlementPayment Finality
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