In which step does the payment brand network provide complete reconciliation to the merchant's bank?

In which step does the payment brand network provide complete reconciliation to the merchant's bank?

• A. Settlement
• B. Authorization
• C. Approval
• D. Clearing

Answer: (D)

The step being tested is where the network aligns and confirms all transaction details across the parties so the merchant’s bank has a single, agreed view of what was charged. After a card is authorized, the clearing process exchanges the transaction data between the merchant’s acquirer and the card issuer through the payment brand network, applying interchange and other fees and ensuring everyone’s records match. This reconciliation step makes the merchant’s bank aware of the exact amounts, statuses, and charges that will be posted. Settlement then moves the actual funds to the merchant’s account, but the complete, reconciled data is established during clearing.

The step being tested is where the network aligns and confirms all transaction details across the parties so the merchant’s bank has a single, agreed view of what was charged. After a card is authorized, the clearing process exchanges the transaction data between the merchant’s acquirer and the card issuer through the payment brand network, applying interchange and other fees and ensuring everyone’s records match. This reconciliation step makes the merchant’s bank aware of the exact amounts, statuses, and charges that will be posted. Settlement then moves the actual funds to the merchant’s account, but the complete, reconciled data is established during clearing.