POS settlement
In one sentenceThe bank's deposit of the net sales from POS terminals into the business's account after deducting fees, usually on the next day, as a single amount for the day's sales.
Simply put
The terminal records every transaction, but the statement shows a single amount for each day, and it may appear a day or more later. So you match each day's sales in the system with their settlement on the statement.
The difference between sales and the settlement should equal the fee and its VAT. Any larger difference may mean a refunded transaction or a settlement that has not arrived.
Worked example
A pharmacy sold 30,000 SAR through its POS terminal on Sunday, and the bank deposited 29,724 SAR on Monday. The assumed fee is 0.8% for illustration and carries 15% VAT.
Card sales30,000
Settlement deposited29,724
Fee = 30,000 × 0.8%240
VAT on the fee = 240 × 15%36
Deducted = 30,000 − 29,724 = 240 + 36 (no difference)276 SAR
Don't confuse it with
Deposits in transitThe settlement for the last day of the month may be a deposit in transit, but in general the settlement is how card sales arrive every day.