Shoplazza Payments | Settlement and Payout Rules

This article explains the settlement and payout rules for Shoplazza Payments, helping merchants understand how funds move from a completed transaction to a withdrawable balance. It covers the settlement cycle (T+N), balance status definitions, and how weekends and public holidays affect payout timing.

Payout Fee Overview

Once a merchant meets the platform’s payout requirements, Shoplazza Payments does not charge additional fees at the payout stage. Any fees shown in the admin are typically payment processing fees incurred at the time of the original transaction. These fees are not deducted again during payout. Instead, they are consistently reflected in settlement records, payout records, and account statements, allowing merchants to review and reconcile transaction-related costs.

End-to-End Settlement and Payout Flow

In Shoplazza Payments, funds generally move through the following stages:

1. A payment is successfully completed and a valid transaction is created.

2. Funds enter the settlement cycle (T+N).

3. Settlement is completed and funds become available.

4. A payout can be initiated once conditions are met.

Not all transactions enter the settlement stage. Different transaction outcomes result in different fund-handling paths.

Failed Payment Transactions

Transactions that do not complete successfully:

• Do not generate processing fees.
• Do not enter the settlement process.
• Do not affect account balances.

Only successfully completed payments with valid transaction records are included in settlement and balance calculations.

Settlement Cycle (T+N)

• T: The date the transaction is completed and the order is generated
• N: The number of required business days for settlement

Shoplazza Payments calculates settlement cycles based on business days, not calendar days. Settlement timing may be affected by:

• The merchant entity’s local business day schedule.
• Weekends.
• Local public holidays.

During the settlement cycle, funds remain in a processing state and are not yet withdrawable.

Settlement Processing Stages

For certain merchant entities, settlement may involve multiple internal processing stages. The settlement process progresses on a business-day basis and may pause during weekends or local public holidays.

Only after all settlement stages are completed will funds move from the pending balance to the current balance and become eligible for payout.

Because settlement timing depends on entity type, settlement currency, and holiday schedules, actual completion times may vary. The admin balance status is the final reference.

Balance Types in the Admin Panel

Merchants can view their balances in Shoplazza Admin > Finances > Balances, which includes the following balance types:

1. Current Balance

• Settlement completed.
• Not held as reserve.
• Available for payout.

2. Pending Balance

• Associated with successful transactions.
• Still within the settlement cycle.
• Not yet reconciled or released.
• Automatically transferred to the current balance once settlement is completed.

3. Reserved Fund

• Applies after a merchant enables Shoplazza Payments.
• Reserve amounts are determined based on merchant entity and business profile.
• Reserve requirements are typically communicated during onboarding or risk review and displayed in the admin after account activation.
• Reserve funds are held to cover potential transaction risks.
• Reserve amounts are shown separately, are not part of the current balance, and are not withdrawable while held.
• Reserve funds are not fees and are not deducted during payout.

Payout Eligibility and Minimum Thresholds

Before initiating a payout, all of the following conditions must be met:

1. Store and Account Status

• Store is active and not suspended.
• Payment account is not frozen.
• Current balance meets the minimum payout threshold (for automatic payout).

2. Minimum Payout Thresholds (by Settlement Currency)

Merchants must meet the applicable minimum balance before initiating a payout:

• USD / CAD / EUR / GBP settlement accounts: Available balance must reach the equivalent of USD 500.
• HKD settlement accounts: Available balance must reach HKD 4,000.

If the available balance does not meet the threshold, payout will not be available until the requirement is met. The payout eligibility and thresholds displayed in the admin are the final reference.

Payout Execution Timing (UTC)

Once funds complete settlement and become available, payouts follow these timing rules (UTC):

• UTC 00:30: Funds are updated to the current balance.
• UTC 01:30: System initiates payout automatically (auto-payout mode).
• Manual payout mode: Merchants may initiate a payout at any time after UTC 00:30.

Additional rules:

• Payouts are executed only on business days, based on the merchant entity’s local banking calendar.
• If the execution date falls on a weekend or local public holiday, payout is deferred to the next business day.
• Final execution timing is based on the actual system run shown in the admin.

Refund Fund Handling

Refund eligibility is evaluated based on the merchant’s total balance (current balance + pending balance) at the time the refund is initiated.

If the available balance is insufficient to cover the refund amount, the refund cannot be completed. The merchant must retry the refund once sufficient funds are available.

Refunds do not incur additional refund fees. However, processing fees from the original successful transaction are generally non-refundable.

Funds During Disputes and Chargebacks

When a transaction enters a dispute or chargeback process:

• The related amount may be temporarily frozen or deducted from the available balance.
• Affected funds may be temporarily unavailable for payout.
• Funds remain unavailable until the dispute process is completed.

The final fund status is determined by what is shown in the merchant admin.

Availability of Withdrawable Funds

Daily transactions do not necessarily result in daily withdrawable funds. Common reasons include:

• Settlement not completed: Funds are still within the T+N settlement cycle.
• Non-business days: Settlement or reconciliation is delayed due to weekends or public holidays.
• Payout execution limits: Payouts are not processed on non-business days.
• Reserve funds: Certain amounts are held as reserves and are not withdrawable until released.
• Minimum threshold not met: Current balance has not reached the automatic payout threshold.

Illustrative Examples (For Reference Only)

The following examples explain settlement logic only. Actual settlement timing depends on business days and admin balance updates.

Example 1: Settlement Without Weekends or Holidays

• Business Day 1: Transaction completed and order created
• Following business days: Transaction enters settlement
• Settlement completed: Funds move to current balance
• If balance meets the payout threshold and the day is a business day, payout can proceed

Example 2: Settlement Including Weekends or Holidays

• Business Day 1: Transaction completed and order created
• Settlement period includes weekends or local public holidays
• Settlement completion is deferred accordingly
• If funds become available on a non-business day, payout is executed on the next business day

Fund Handling When a Store Stops Operating

If a merchant stops operating and no longer generates new transactions, the account may still contain unsettled funds or reserve balances.

In this scenario, Shoplazza applies a 180-day fund holding and observation period based on settlement and risk management rules. This period is used to address potential refunds, disputes, or post-transaction matters.

After the 180-day period ends, provided there are no unresolved risk issues, remaining funds are settled according to the agreed process and transferred to the merchant’s original linked bank account.

This process applies only to store closure or special exit scenarios and does not affect normal daily settlement or payout operations.

Best Practice

Instead of checking available balances daily, merchants are encouraged to download account statements from the admin and review the actual settlement and payout dates for each transaction. Comparing these records with internal data provides a more accurate view of fund movement.

Shoplazza Payments settlement and payout rules are built on business-day-based settlement cycles, multi-stage processing, and reserve mechanisms to ensure fund security and reconciliation accuracy. Understanding settlement timing (T+N), balance statuses, and special scenarios helps merchants set realistic expectations for fund availability and avoid unnecessary confusion.