With traditional bank accounts, customers were only able to see transactions once they had been 'settled'. Which is why there would be a difference in amount between your available balance and the total of the visible transactions on your online banking. With fintechs, such as Soldo, we are able show our users both transactions that have been 'authorised' so companies can manage their cash flow in real time, and transactions that have been 'settled'.
Authorised (aka 'pending'): When a transaction has occured, it will first be 'authorised' by your bank. The funds are held in your bank account with plans to clear. Often the transaction will be settled within a day, barring any disputes or currency conversion. The date of the authorisation will also help you distinguish between Monday's coffee and Tuesday's coffee from the same retailer.
Settled: Once the money has actually left your bank account, the amount is referred to as a settlement. This is the final charge for that transaction. That's why all exports from Soldo will list transactions according to the date of settlement, rather than the date of the authorisation.
Here are a couple of instances where you will see authorised or settled transactions:
- Dashboard: Authorised transactions will be referred to as 'Pending Balance', and the difference between the amount in your account minus the total of the settled transactions (and thus excludes authorised transactions).
- Report > Xero: You will only be able to see settled transactions, as only these are able to be exported to Xero.
- Report > Transactions: This section will only show settled transactions.