What is the settlement date?

Point of Sale (POS) Glossary

When an electronic payment is made at a point of sale terminal, it appears on a customer’s account as pending. When the bank initiates the final posting, the charge becomes confirmed, and this is known as the settlement date.

Customers will generally see items remain pending after a POS charge for a few days as the transaction is processed. When it is confirmed, the pending charge will change on their account to the final posting.

If a charge does not confirm due to a cancelation or other reason, the pending charge will not ever confirm and will have no settlement date. The amount of the charge might change between when the transaction occurred and the settlement date, for instance, if a tip was added to the total.