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T+2 (Flow) Settlement Model

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Written by Operator
Updated over 2 weeks ago

The T+2 (Flow) settlement model means that funds from successful transactions are paid out to the client two business days after the transaction is authorized or paid by the end user.

This model is designed to create a stable and predictable settlement flow, allowing for operational controls, reconciliation, and risk management—while still providing timely access to funds.


How it works

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

  • Each day’s transactions are settled two business days later.

  • Transactions processed close to or during the weekend are settled on the next available banking day, following the T+2 rule.


Daily Breakdown

Monday to Wednesday

  • Transactions completed during the day

  • 👉 Settled two business days later

Examples:

  • Monday transactions → Paid on Wednesday

  • Tuesday transactions → Paid on Thursday

  • Wednesday transactions → Paid on Friday


Thursday

  • Transactions completed on Thursday

  • 👉 Settled on Monday

(Because the two-business-day window crosses the weekend)


Friday

  • Transactions completed on Friday

  • 👉 Settled on Tuesday


Weekend (Saturday & Sunday)

  • Transactions completed on Saturday or Sunday

  • 👉 Settled on Tuesday

(Weekend activity is accumulated and processed starting Monday)


Why weekend transactions settle on Tuesday

Banks and payment networks do not process settlements on weekends.
Under the T+2 model:

  • Friday, Saturday, and Sunday transactions are grouped

  • The two-business-day count begins on Monday

  • Resulting in settlement on Tuesday


What “Flow” means

The Flow model emphasizes consistency and operational stability over raw speed.

It enables:

  • Better reconciliation accuracy

  • Improved chargeback and fraud monitoring windows

  • More predictable treasury planning

  • Reduced operational and liquidity risk


When T+2 (Flow) is the right choice

This settlement model is ideal for:

  • Businesses prioritizing operational control

  • Merchants with high volume and steady cash flow

  • Use cases requiring additional validation or risk checks

  • Companies optimizing treasury and settlement forecasting


Key Takeaways

  • T+2 = Settlement two business days after transaction

  • Cutoff: 23:59 UTC-6

  • Weekend transactions settle on Tuesday

  • Built for smooth, predictable payment flows

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