A successful transaction will go through the following statuses:

Learn more about all of the possible statuses transactions can have.


The first step is to ask the customer’s bank if the payment method is legitimate and has sufficient funds to pay for your product or service. If the customer's bank approves, the transaction is Authorized. This puts a hold on the funds, meaning the customer isn’t able to spend that money, but it doesn’t take any funds out just yet.

Submitted for settlement

Eventually, authorizations will expire. In order to collect funds, you need to submit for settlement. This is enabled by default when creating a transaction via the Control Panel, but you have to specify whether you want to submit for settlement when creating a transaction via the API.

In most cases, you’ll want to submit a transaction for settlement at the same time that you authorize the payment. Some merchants that ship physical goods wait to submit for settlement until after the product has shipped in order to reduce chargebacks. Read more about extended authorizations in Managing Authorizations.


This is a transitory state. When Braintree begins communicating with the processor about the settlement request, the transaction will move from Submitted for Settlement to Settling. The amount of time a transaction spends in the Settling state depends on the processing bank. Contact our Support team if you have questions.


This is when the money moves from your customer’s bank through your merchant account. Once the money hits your merchant account, the transaction will display as Settled, and the funds will be routed to your bank account. For more information on funding timelines, continue to the next section.

Next: Get Paid

Still Have Questions?

If you can’t find an answer, give us a call at 877.434.2894 or contact our Support team

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