Settlement Models & Fund Flow Structures
Settlement models determine how funds move between consumers, merchants, EPSPs, and banks. Proper settlement design protects customer funds, reduces settlement risk, and ensures transparency for regulators. In Iraq, the CBI reviews settlement arrangements before authorizing service launch to ensure operational integrity and financial stability
Settlement Components
- Settlement bank relationships
- Clearing and payout cycles
- Wallet top-up and redemption mechanics
- Chargeback and dispute flows
- Reconciliation and reporting processes
Operational Considerations
- Timing of merchant payouts
- Handling of failed or reversed transactions
- Segregation of customer funds from corporate funds
- Safeguarding mechanisms for stored value accounts
CBI compliance
- Submit documentation on settlement design
- Demonstrate risk mitigation for fund flows
- Maintain escrow or safeguarding arrangements if required
How Etihad Can Assist
Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.