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What is a payment settlement?

pay - ment set - tle - ment
noun

Settlement is the final state of a financial transaction where the actual transfer of funds or assets take place between two parties, typically a buyer, the party making a payment, and a seller, the party receiving the payment. It involves the transfer of money from the buyer's financial institution to the seller's financial institution, resulting in the completion of payments. Settlement serves as the pivotal moment that solidifies the successful conclusion of the transaction.