Flutterwave settlements: timing and deductions
When Flutterwave collections reach a Nigerian merchant's bank, what is deducted on the way, why a settlement can be flagged, and how to reconcile each one.
By Achekam · · 4 min read · For Running a business businesses in Nigeria
On Monday the Flutterwave dashboard shows a healthy weekend of sales. On Tuesday the bank statement shows a credit from Flutterwave that is smaller, arrives as one lump, and matches none of the individual sales. By Friday the bookkeeper is trying to work backwards from one bank line to dozens of customer payments.
That gap between what customers paid and what lands in the bank is what a settlement is. This article explains, from Flutterwave's documentation, when collected money is released, what is taken off on the way, why a settlement can be held back, and how to reconcile each one in your books.
Holding periods and the collection balance
Flutterwave's documentation says collected funds reach the merchant's settlement account after a holding period that varies with the kind of payment made. Until then, the money shows as the collection balance on the dashboard.
The documentation does not give the holding period for each payment method. In practice, that means card money and transfer money may not arrive together even if the customers paid on the same day. Watch your own pattern for a few weeks before you plan payments against Flutterwave money you have not yet received.
Who is eligible to be settled
Flutterwave's documentation says only accounts approved for live transactions are eligible for settlements. A merchant must complete its KYC process to secure approval and add its settlement bank account details on the dashboard.
A new business therefore receives nothing until its account is approved for live transactions. Finish the KYC steps before you launch, not after the first customers have paid.
Daily batches, one currency each, and a minimum
Several rules decide how collections are grouped into settlements:
- The daily cut-off. Flutterwave's documentation says transactions made before 23:59 GMT+1 on the settlement date are batched and settled at once.
- One currency per settlement. Each settlement contains transactions in a single currency. A business that collects in naira and in dollars can receive several settlements on the same day, one per currency.
- The minimum threshold. Where the cumulative value of a merchant's transactions is below the minimum settlement threshold, Flutterwave batches the settlement, which leads to a slightly longer settlement time. The page does not state the threshold amount.
For a small business on a quiet day, the third rule explains why nothing arrived: the day's collections are waiting to be joined to the next day's.
What comes off on the way: the settlement record
The bank credit is a net figure. Flutterwave's documentation says merchants can get settlement information from the settlements endpoint or the dashboard and download the list of transactions that make up each settlement. Its sample settlement record itemises the gross amount, the app fee, chargebacks, refunds, a stamp duty charge and the net amount.
That record is the key to reconciliation. Each line on it explains part of the gap between your sales and your bank credit:
- Gross amount: what customers paid, your sales receipts.
- App fee: Flutterwave's charge, a cost of selling.
- Chargebacks and refunds: money returned to customers.
- Stamp duty: the NRS says electronic receipts or transfers of N10,000 and above attract a fixed stamp duty of N50, payable by the transferor, with exemptions for money paid into the payer's own account, transfers between accounts of the same owner within the same bank, and salary payments. How this works for businesses is covered in stamp duty on electronic transfers.
- Net amount: what reaches your bank.
Flutterwave explains settlement timing, eligibility and records on its settlements page, including how and when funds reach your bank account or payout wallet after the holding period.
Flagged settlements
Sometimes a settlement does not arrive at all. Flutterwave's documentation says flagged settlements are not released to the merchant, who should view the settlement details to see why it was flagged and report it to Flutterwave's support team.
Check the dashboard for flagged settlements whenever an expected credit is missing, rather than waiting for Flutterwave to get in touch. Keep a note of the settlement reference, the date you reported it and the reply.
Matching each settlement in Achekam
Achekam keeps the gross and the net apart, which is what makes a settlement reconcile.
- Customer payments recorded against invoices land in the Flutterwave clearing account at their full amount.
- Payouts from each payment gateway are recorded against that gateway's clearing account with its fees, by hand or from Flutterwave's own payout lists. Recorded this way, each settlement clears its gross from the clearing account, with the fee as a cost and the net going to the bank.
- The bank statement is imported as PDF, CSV, Excel, OFX, QIF, MT940 or CAMT.053, and each import is checked so that the opening balance plus movements equals the closing balance.
- Matching: bank lines are matched by suggestion and a person accepts each match. A line not yet in the books becomes a suggested journal a person approves, and a reconciliation completes only when every leftover line is explained or the difference is nil.
At month end, the Flutterwave clearing account should hold only collections that have not yet settled. If it holds more, something was not recorded: a refund, a chargeback or a fee. Gateway payouts and fees are compared across providers in gateway payouts and fees.
A weekly settlement check
- Download the week's settlement records from the dashboard.
- Confirm each net amount arrived in the bank on the expected day.
- Record each payout with its fee against the clearing account.
- Record chargebacks, refunds and stamp duty shown on the record.
- Look for flagged settlements and follow up any that are missing.
- Check the clearing account balance against unsettled collections.
Done weekly, the job takes one sitting. Left for the year end, it becomes an investigation.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
