Operations

Authorisation, clearing and settlement in gambling payments

Authorisation is the issuer saying yes to a payment. Settlement is when the money actually moves. Between them sits clearing, when the transaction is submitted and the final amount fixed. An operator that treats an approved deposit as received money can misstate balances and miss failed payments.

By Clera Dukuk · Published 24 October 2026

Coverage
General explainer, card payments
Sources checked
24 October 2026
Next review
24 April 2027

Key points

  • The ECB defines authorisation as "the consent given by a participant ... in order to transfer funds".
  • Clearing is the transmitting, reconciling and sometimes confirming of transactions before settlement.
  • Settlement is the completion of a transaction, when participants meet their obligations through the transfer of funds.
  • A settled card payment can still be disputed later through the scheme's chargeback process.
Card deposit lifecycleA card deposit moves through authorisation, clearing and settlement. The player sees a balance after authorisation, but the operator receives funds only at settlement.Playerpays by cardOperatorcashierrequests paymentAcquirer / PSProutes requestCard schemeVisa, MastercardIssuerplayer's bank1. AuthorisationIssuer approves or declines andplaces a hold. Seconds.2. ClearingThe operator's acquirer submitsthe transaction, often in a dailybatch, and the final amount is set.3. SettlementFunds move from issuer to acquirer.The acquirer pays the operator onthe schedule in its contract.
A card deposit: three stages after the player presses "deposit". Our diagram; timings vary by scheme, acquirer and contract.

The official definitions

TermDefinitionSource
Authorisation"The consent given by a participant (or a third party on his behalf) in order to transfer funds or securities."ECB glossary (2008)
Clearing"The process of transmitting, reconciling and, in some cases, confirming transactions prior to settlement"BIS CPMI glossary
Settlement"The completion of a transaction or of processing in a transfer system, such that participants meet their obligations ... through the transfer of securities and/or funds."ECB glossary (2008)
Final settlement"The irrevocable and unconditional transfer of an asset or financial instrument, or the discharge of an obligation"BIS CPMI glossary
Sources: ECB glossary; BIS CPMI glossary. Quotes shortened where marked. Checked 24 October 2026.

These are general payment-system definitions. Card schemes set the detailed rules for their own networks in documents such as the Visa Core Rules and the Mastercard Rules.

Authorisation: a yes, not a payment

When the issuer approves a card deposit, it has agreed the payment may go ahead and usually reserves the amount on the player's account. No money has reached the operator. Most operators credit the player's gambling balance at this point so play can start, which means the operator is extending trust until settlement arrives.

Clearing: submitting the transaction

The operator's acquirer then submits the transaction, often in a batch, and the final amount is confirmed. A deposit that was approved but never submitted, or submitted twice, shows up here. This is why reconciliation should compare authorisation records with clearing records, not only with the cashier's own log.

Settlement: money moves

Funds move from the issuer to the acquirer through the scheme, and the acquirer pays the operator on the schedule in its contract, usually net of fees and any reserve it holds. The settlement report from the acquirer is the operator's evidence of money received.

After settlement: disputes

A settled card payment is not beyond challenge. The cardholder can dispute it through the issuer, and the scheme's dispute process can reverse the funds. Visa groups disputes into four categories: fraud, authorisation, processing errors and consumer disputes. Our chargeback guide covers how disputes work for gambling merchants.

What this means for operators

  • Track three statuses, not one. Authorised, cleared and settled are different facts; a cashier that only records "success" cannot reconcile.
  • Know your exposure. Balances credited on authorisation are exposed until settlement and, for cards, until the dispute window closes.
  • Match settlement reports daily. Missing or short settlements are easier to chase while the transaction is fresh; see our reconciliation controls guide.
  • Explain it to players. A deposit that shows as pending on a bank statement is an authorisation hold, not a failed payment or a double charge. Clear wording cuts support contacts.

Questions about authorisation and settlement

Why does my bank show a gambling deposit as pending?

A pending entry is usually an authorisation hold: the bank has approved the payment and reserved the amount, but the transaction has not yet cleared and settled. The entry normally updates once settlement completes.

Is an authorised payment guaranteed?

No. Authorisation is consent to proceed. The transaction still has to be submitted and settled, and a settled card payment can later be disputed through the scheme's chargeback process.

Sources

  • ECB, Glossary of terms related to payment, clearing and settlement systems (30 September 2008)
  • BIS Committee on Payments and Market Infrastructures, A glossary of terms used in payments and settlement systems
  • Visa, Dispute Management Guidelines for Merchants (October 2026)
  • All sources checked 24 October 2026.