Definition
T+0 and T+1 settlement refer to the time taken for funds to be credited to a merchant after a transaction. T+0 means same day settlement. T+1 means next business day settlement.
How this works
Transactions are batched and settled as per agreed timelines. Banks or payment aggregators release funds based on clearing windows and risk controls.
Benefits
• Faster access to working capital
• Improved cash flow
• Predictable settlement cycles
• Better financial planning
FAQs
Why do some businesses prefer T+0 settlement?
They need faster liquidity for operations and inventory cycles.
Is T+0 available for all merchants?
No. It depends on risk profile, industry type, and aggregator policy.
Does T+1 settlement reduce risk?
Yes. It allows additional time for fraud checks and transaction validation.
Do UPI and card payments follow the same settlement timeline?
Settlement timelines vary by payment method and banking arrangements.