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T+1 (Speed) Settlement Model

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Written by Operator
Updated over 2 weeks ago

The T+1 (Speed) settlement model means that funds from successful transactions are paid out to the client one business day after the transaction is authorized or paid by the end user.

How it works

  • All transactions are grouped by calendar day (00:00–23:59, UTC-6).

  • Each day’s total is settled on the next business day.

  • Transactions made on Friday, Saturday, or Sunday are settled together on Monday, due to banking non-business days.


Daily Breakdown

Monday to Thursday

  • Transactions completed during the day

  • 👉 Settled the following day

Example:

  • Transactions on TuesdayPaid on Wednesday

Friday

  • Transactions completed on Friday

  • 👉 Settled on Monday

Weekend (Saturday & Sunday)

  • Transactions completed during the weekend

  • 👉 Settled on Monday


Why some days settle on Monday

Banks and payment rails do not process settlements on weekends.
As a result:

  • Friday, Saturday, and Sunday transactions are accumulated

  • Paid together on Monday


What “Speed” means

  • Faster access to cash compared to standard T+2 or T+3 models

  • Improves:

    • Cash flow

    • Operational liquidity

    • Reinvestment speed for merchants


Key Takeaways

  • T+1 = Next business day settlement

  • Cutoff: 23:59 UTC-6

  • Weekend transactions settle on Monday

  • Designed for high-volume and high-performance businesses

  • Only applicable for SPEI.

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