What Is Direct Settlement?

Last updated: November 27, 2025

Direct Settlement means that funds from your customer payments are sent straight to your own bank account instead of being held in an Ivy collection account. This allows you to receive your money immediately.

How Direct Settlement Works

With Direct Settlement enabled:

  1. A customer completes a payment through Ivy.

  2. Ivy initiates the transfer directly to your bank account.

  3. Funds arrive based on the speed of the underlying banking rail (instant where supported).

There is no intermediate balance held by Ivy. You receive each payment individually as it processes.

Downsides:

  1. No payouts or instant refunds possible (no Ivy balance to draw from)

  2. Harder reconciliation (many individual bank entries instead of one daily sweep)

  3. Settlement speed depends fully on the customer’s bank

  4. No ability to hold, pause, or review funds for risk checks

  5. Overall reduced flexibility compared to the collection account model