# Settlements

Settlement is the process of actually transferring funds between parties to finalize a transaction.
Settlements are resolved in batches.
All outstanding authorized transactions are resolved together.
This processing transfers funds to the merchants' accounts.
The merchant defines a settlement time in their merchant dashboard.
This the time of day, typically at night or after the store's closing.
Settlements are done automatically at that time.
There is no explicit API call needed to start this automatic processing.
Alternatively, the batch settlement may be explicitly started at any time.
Use: POST {{baseURL}}/v2/settlements/batches/close
This does not process individual transactions.
It processes only outstanding authorized transactions.
The only difference is the endpoint gives the merchant some flexibility in the settlement batches.
If the open batch has no outstanding transactions to settle, this call returns `400 Bad Request` instead of submitting an empty settlement.
A typical workflow for settlement includes:
**Authorization**
An authorized transaction is one that has been approved and funds are held or reserved.
No money has moved yet.
That means funds are not instantly available for each transaction.
Merchants may see a delay between a sale and the funds deposited in their account.
For example, the following call starts a transaction with the `captureMethod` of `Auto`.
This automatically adds the transaction in an open settlement batch when the transaction is completed.
The call returns `transactionId`, which may be used to reference this transaction.
Sample Authorization Call
```csharp
  POST /v2/transactions
  Authorization: Bearer {{apiKey}}                                                                                          
  Content-Type: application/json
  {                                                                                                                         
  "baseAmount": 150.00,                                                                                                 
  "currencyCode": "USD",
  "customerInitiatedTransaction": true,
      "transactionDetails": 
      {
          "cardData":
          {
              "captureMethod": "Auto",
              "paymentMethodDetails":
              {
                "cardNumber": "4111111111111111",
                "securityCode": "737",
                "expirationMonth": 9,
                "expirationYear": 2027
                }
            }
        }
    }
```
**Capture or batch**
Approved transactions are grouped together, or batched, for later processing.
If `captureMethod` is `Auto`, no additional processing is required at this step.
The transaction has been added to the settlement batch automatically.
If `captureMethod` is `Manual`, the transaction must be explicitly added to the settlement batch.
In this case use POST /v2/transactions/{{transactionId}}/capture to capture it to the settlement batch.
Care must be taken when using `Manual` because if the transaction is never captured, the authorization simply expires and no funds move.
Sample Capture CallOmit the body (or send {}) for a full capture. Once captured, it enters the open settlement batch.

```csharp
POST /v2/transactions/{{transactionId}}/capture
Authorization: Bearer {{apiKey}}
Content-Type: application/json

{
  "amount": 150.00
}
```
**Settlement**
Settlement is the step where an authorized transaction becomes a real transfer of money.
The batch is submitted to the card networks or banks.
This processing includes moving the money from the cardholder's bank, through the network, to the acquiring bank.
It eventually ends at merchant's account, minus fees.
This batch processing usually happens on a schedule, such as daily batch settlement at the end of business.
**Verifying**
It may take a while for settlement processing to finish.
To verify the status of the settlement processing use:
GET /v2/settlements/batches
See `batchStatus` for the settlement status.
The processing is complete with the status `Settled`.
Note that `createdOn` is `null` for the currently open batch, since its record is only materialized once settlement completes.
To retrieve every transaction inside a specific batch, use GET /v2/transactions with the `batchId` filter.
Rather than polling GET /v2/settlements/batches, subscribe to webhook endpoint for `settlement.batch.completed`.
This returns a pushed notification once the settlement batch finishes processing.
The webhook return payload is a reduced portion of the full payload.
It intends to be complete enough to verify the result.
No status is included because this event is triggered only by a `Settled` status.

```json
    {
        "id": "0f27fcce-a282-4049-b984-e82325ea1d6b",
        "data": { "object": { "id": "555e779c-...", "resourceType": "settlement" } },
        "type": "settlement.batch.completed",
        "created": 1784068840,
        "apiVersion": "v2"
    }
```

 - [GET /v2/settlements/batches](https://developer.flute.com/api-reference/v2/flute-v2/settlements/flute-v2-get-settlements-batches.md): GET {{baseURL}}/v2/settlements/batches This endpoint lists transaction batch settlements. `createdOn` is `null` for the currently open batch, since its record is only materialized once settlement comp
 - [POST /v2/settlements/batches/close](https://developer.flute.com/api-reference/v2/flute-v2/settlements/flute-v2-post-settlements-batches-close.md): POST {{baseURL}}/v2/settlements/batches/close This endpoint closes the merchant's currently open batch and submits its unsettled transactions for settlement with the specified payment processor. Settl