Settlement of PayPal transactions

Please be aware that this page documents the settlement process with specific considerations for PayPal, which differs in some aspects from the standard settlement process for card-based payment methods.

PayPal settlestatus values

settlestatus	Description
0	Transaction is pending settlement You can manually suspend the transaction by updating to status “2”. Alternatively, you can cancel the transaction by updating to status “3”.
1	Transaction is pending settlement, bypassing internal fraud and duplicate checks You can manually suspend the transaction by updating to status “2”. Alternatively, you can cancel the transaction by updating to status “3”.
2	Transaction is suspended – Funds will not be transferred without your approval You can schedule settlement by updating to status “1”. (This must be performed within 7 days for settlement to be completed successfully) Alternatively, you can cancel the transaction by updating to status “3”.
3	Transaction is cancelled No further updates possible.
10	Transaction settlement process underway You cannot update the transaction. When the settlement process has been completed, the status updates to “100” (see below). PayPal perform checks on the transaction and if they find issues that need to be addressed, the payment will remain in status “10”. In this case, Trust Payments will internally investigate to determine the case of the issue.
100	Transaction settlement process is complete Funds will be transferred into your bank account. No further updates possible.

If settlement is not completed due to a problem on PayPal’s system, the transaction will be automatically re-scheduled for settlement in the next batch (typically the next day). We will automatically update the status to “1”, allowing settlement without further checks from Trust Payments.

Immediate settlement

By default, PayPal transactions will be settled automatically by Trust Payments (typically within 24hrs). However, you can opt to settle a PayPal transaction immediately. This is achieved by including a settle status of “100” in the AUTH request.

When opting to immediately settle a PayPal transaction (to settle status “100”), our internal Fraud checks will be bypassed (if enabled).
However, PayPal’s own internal fraud checks will always be processed.

Deferred settlement

By suspending a transaction (setting the settle status to “2”), you can defer settlement for up to 7 days. This can be achieved by either:

Including a settle status of “2” in the AUTH request.
Performing a TRANSACTIONUPDATE request on a previously authorised transaction, specifying a settle status of “2”.

Partial settlement

You can opt to settle a lower amount than originally authorised. This can be achieved by performing a TRANSACTIONUPDATE request on a previously-authorised transaction and specifying a lower amount, providing it is still pending settlement.

Further reading on this topic