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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