Description: Learn how to check that your payout matches your bank deposit using the Settlement Report.
Availability: Europe
Before You Start
Who this is for: Any merchant in Europe (EU) who wants to confirm they were paid the right amount. This guide covers transaction types specific to EU settlement.
The date filter on the Settlement Report pulls based on the Batch Closed Date.
Note: A batch is the group of transactions your business sends for processing when the day closes.
What Is Settlement Reconciliation?
Reconciliation is confirming that the payout on your Settlement Report matches the deposit that lands in your bank account. Take the gross settled amount for a batch, subtract refunds, chargebacks, reversals, and fees, and check it against the actual amount deposited. When the two match, you're reconciled. When they don't, this guide helps you find the gap.
Understand the Settlement Report Terms
The report groups transactions by type. Reconciliation depends on knowing what each one does to your payout.
| Term | Definition |
|---|---|
| Gross Settled | Transactions successfully processed and completed. The starting point for your payout calculation before fees are deducted. |
| Net Settled | The Gross Settled amount minus processing fees. |
| Refund | Funds returned to a customer. Subtracts from your payout. |
| Chargeback | Transactions reversed due to a customer dispute. Subtracts from your payout. |
| Reject | Transactions not approved or processed. Subtracts from your payout. |
| DCC Revenue | Revenue share from Dynamic Currency Conversion (DCC) transactions. Adds to your payout. |
| Reversal | Transactions previously approved but subsequently reversed. Subtracts from your payout. |
| Payout - Adjustment | An amount debited or credited to modify your balance. Applied at the acquiring contract level, not per MID (Merchant ID). Adds or subtracts. |
| Payout - Service Fee | Fees charged for Shift4 services (e.g., wire transfer fee). Applied at the acquiring contract level, not per MID. Subtracts from your payout. |
| Payout - Reserves | Amounts deducted from, and released back to, the merchant's collateral. Applied at the acquiring contract level, not per MID. Adds or subtracts. |
| Payout | The final funds transferred to your bank account. |
Level 1: Calculate Your Batch-Level Reconciliation (Daily Quick Check)
- Pick a single payout date on your Settlement Report.
- Calculate the Net Payout: Take the Gross Settled amount for a batch and subtract fees, refunds, chargebacks, reversals, and rejects, then add any DCC Revenue.
Net Payout = Gross Settled − Fees − Refunds − Chargebacks − Reversals − Rejects + DCC Revenue - Calculate the Deposit Total: Apply the acquiring contract level items for that payout to find the final deposit amount.
Deposit Total = Net Payout (all MIDs) ± (Payout - Adjustment) − (Payout - Service Fee) ± (Payout - Reserves)
Example: Single MID
You are reconciling your payout for August 15th. On the report, you find these net totals for that settlement date (amounts in GBP):
- Net Settled: Gross Settled (£2,000) − Fees (£20) = £1,980
- Refunds: £10
Net Payout = £1,980 − £10 = £1,970
Now apply the acquiring contract level items for that payout:
- Payout - Service Fee: £0.25 (deducted)
Deposit Total = £1,970 − £0.25 = £1,969.75
If your bank deposit for that payout is £1,969.75, you're reconciled. If it's different, proceed to Level 2.
How Do I Reconcile Multiple MIDs or Locations?
Important: Service Fee, Reserves, and Adjustments apply at the acquiring contract level, not per MID. Don't apply them to each MID separately, or you'll miscalculate.
- Calculate the Net Payout for each MID without the contract-level items:
Net Payout (per MID) = Gross Settled − Fees − Refunds − Chargebacks − Reversals − Rejects + DCC Revenue - Add up the Net Payout across all your MIDs.
- Apply the acquiring contract-level items once:
Deposit Total = Total Net Payout (all MIDs) ± Payout - Adjustment − Payout - Service Fee ± Payout - Reserves
Example: Multi-MID
- MID A Net Payout: €5,000
- MID B Net Payout: €4,500
Total Net Payout = €9,500
Subtract the Contract Service Fee (€25) and apply Reserves (−€200 held) from the total:
€9,500 − €25 − €200 = €9,275 Deposit Total
Level 2: How Do I Trace a Misalignment with the Settlement Detail Report?
When a total on the Settlement Report doesn't match what you expect, use the Settlement Detail Report to see the individual transactions behind it. It has one row per transaction, with fees itemized, so you can find the exact transaction causing the gap.
Tie a Row Back to Your Payout
Match the Batch Number on a detail row to the batch on your Settlement Report. That's how you confirm a Settlement Report total is the sum of its transactions.
See the Fees Behind a Transaction
The Settlement Report gives you totals by type. The Settlement Detail Report shows the card brand fee, interchange (the fee set by the card networks), and processor fee per transaction, so you can see why a Net Settled total is lower than the Gross amount.
Troubleshooting
Why Is My Deposit Lower Than My Sales?
This is expected. Refunds, chargebacks, reversals, fees, and held reserves all reduce the payout.
Why Hasn't My Payout Arrived Yet?
The Payout Date is when the processor pays out; funds take one to three more days to appear because of weekends and holidays.
Why Doesn't a Day's Sales Match One Batch?
A single business day's transactions don't always settle in the same batch. One can fall into a separate batch when it's captured near the day's cutoff, or when the processor groups it differently. To preview a batch before it settles, use the End of Day Batch Totals Report — a static snapshot of each submitted batch, grouped by card brand.