Acceptance for Settlement
Definition:
The moment at which a payment transaction becomes irrevocable as far as the sender is concerned. This is the point at which a transaction passes the tests to determine whether there is sufficient collateral for the transaction to proceed.
Details:
You have to see this as the last stage of a payment before being irrevocably settled (according to BIS principles).
At this point all the format validations, parties validations (KYC), account validations, anti money laundry (AML) validations are passed. All what is left is for the payment to be settled by the settlement engine of a certain payment processor engine.
Note:
This is a series of posts with definitions for the jargon used in #banking, #fintech and #payments.
Too many people use some terms without understanding them beyond the definition.
Too many “experts” use the terms but they never had experience with the actual implementation of anything in #banking, #fintech and #payments.