One picture is worth more than a thousand words. This is what happens when you buy a product using Paypal/bank card under the hood. To understand this, we need to digest two concepts: clearing & settlement. Clearing is a process that calculates who should pay whom with how much money; while settlement is a process where real money moves between reserves in the settlement bank.
Money movement when you buy a product online
Money movement when you buy a product online
Money movement when you buy a product online
One picture is worth more than a thousand words. This is what happens when you buy a product using Paypal/bank card under the hood. To understand this, we need to digest two concepts: clearing & settlement. Clearing is a process that calculates who should pay whom with how much money; while settlement is a process where real money moves between reserves in the settlement bank.