Real-time processing
Real-time processing refers to the immediate processing of a payment — from authorisation to credit — without any time delay.
Real-time processing
Real-time processing in payment transactions means that a transaction is processed immediately — without batch processing or any time delay. In a narrower sense, this concerns authorisation (seconds), and in a broader sense, also settlement (instant payments).
With card payments, authorisation already takes place in real time: within 1–3 seconds, the issuer checks the transaction and approves it. Settlement (the actual transfer of money to the merchant) traditionally takes place with a time delay — often not until the next banking business day or at longer intervals.
Instant payments close this gap: with SIC Instant Payments (Switzerland) or SEPA Instant (EU), the amount is credited within seconds — even outside of banking business hours. For you as a merchant, real-time processing means better cash flow and faster availability of your money.
Real-time processing examples
A credit card payment is authorized in 2 seconds — real-time processing during authorization.
An instant payment via SIC IP is credited to the merchant within 5 seconds — real-time processing during settlement.
A PSP offers daily payouts: All transactions from the previous day are paid out in a bundle in the morning — not real-time processing, but close to it.
Real-time processing FAQ
What is real-time processing in payment transactions?
Real-time processing means that a payment is processed immediately — within 1–3 seconds for authorization, and within seconds for settlement via Instant Payment until it is credited.
Is card authorization processed in real time?
Yes, authorization takes place in real time (1–3 seconds). However, the settlement (the payout to the merchant) is often delayed — depending on the PSP, this can be daily, weekly or monthly.
What is the difference between real-time authorization and real-time settlement?
Real-time authorization checks immediately whether the payment is approved. Real-time settlement (instant payments) transfers the amount instantly to the recipient's account. Both combined result in complete real-time processing.
Do you as a merchant benefit from real-time settlement?
Yes, real-time settlement improves cash flow: merchants receive the transaction amount immediately instead of after days. This is particularly relevant for businesses with tight liquidity or high sales volume.
