Flow of funds

After Datman processes a payment for your merchant, the funds are held in a Datman account. They are settled to your merchant after the settlement delay, and then paid out to the merchant's bank account according to their payout schedule.

RequirementsCopy Anchor Link

Before you begin, take into account the following limitations:

How fund settlement worksCopy Anchor Link

Shoppers pay your merchants through Datman, and Datman processes the payments through multiple acquirers. The funds are held in a Datman account until they are paid out. The period between the payment and the settlement depends on the merchant's settlement delay: usually two days (T+2), or one day (T+1) or four days (T+4), depending on what was agreed at onboarding.

For example, consider a merchant with a settlement delay of two days. A payment made for that merchant on Monday is settled two days later, on Wednesday.

After settlement, Datman pays out the funds to your merchant's verified bank account. When this happens depends on the merchant's payout schedule, for example every weekday at 07:00. Payouts also depend on verification: a merchant on staggered onboarding is paid out only while they have submitted all the information required for their tier. You can get the payout schedule of a merchant, which also returns its settlement_delay in days, and you can change the schedule.

Settlement calculationCopy Anchor Link

Datman deducts the fees for a payment at the time of the transaction. When a merchant is on a blended rate, the fees are deducted from the merchant's Datman account.

The fees charged to a merchant depend on their fee tier: a percentage and a fixed amount for each transaction. You can see a merchant's fee tier in their payment configuration.

Settlement delayCopy Anchor Link

After a payment is processed, Datman applies a waiting period before the funds are settled. This waiting period is called the settlement delay. It is agreed for each merchant at onboarding, and it counts business days only: weekends and bank holidays are not counted.

The following table shows examples of how the settlement delay works:

ExampleCopy Anchor Link

When a shopper in Manchester pays Example Pizza Ltd GBP 24.50 on a Monday for a pizza delivered by Example Delivery Ltd:

1. The shopper pays GBP 24.50 on the hosted payment page. The payment request includes a split for the GBP 3.00 delivery fee: split_fee with partner_merchant_id set to the MID of Example Delivery Ltd, type_id 3 (Delivery Fee), value 3.00 and value_type amount.
2. Datman processes the payment through one of its acquirers, and sends your server a paymentStatus webhook with the result.
3. Based on the split instructions, Datman books the following amounts:
   • GBP 21.50 to the Datman account of Example Pizza Ltd
   • GBP 3.00 to the Datman account of Example Delivery Ltd
4. At the time of the payment, Datman deducts the fees. Example Pizza Ltd is on a blended rate, so the fees are deducted from its Datman account.
5. The funds are kept in each merchant's Datman account. With a settlement delay of two days (T+2), they are settled on Wednesday. With T+1 they are settled on Tuesday, and with T+4 on Friday.
6. Depending on their payout schedule, Datman pays out the settled funds to each merchant's verified bank account. You can list the payouts of a merchant, with their status, for example SENT or FAILED.

To see how the payment was split, get the splits of the transaction.

Next stepsCopy Anchor Link