To help you better understand the “settlement adjustment” entries in your debit card transaction records, we provide the following explanations regarding the meaning, common scenarios, and billing representation of this category of records:
I. What is Settlement Adjustment?
Settlement adjustment refers to the change in amount or status that occurs during the clearing process from the pre-authorization stage to the formal settlement stage. When you use your 8V debit card for purchases, settlement adjustment typically occurs in pre-authorization transactions or cross-border/exchange rate change transactions. This is a normal occurrence in Visa’s global clearing process and will not result in duplicate charges or financial loss.
II. Common settlement adjustment types include the following scenarios:
| Adjust type | Definitions and Explanations | Example of a scenario |
|---|---|---|
| Equal settlement | The merchant’s settlement amount is the same as the pre-authorization amount; it’s just a status change. | Spend $100 at retailers like Zara and get $100 in final billing. |
| Differential settlement | When merchants settle different amounts, adjustments arise, resulting in refunds for overpayments and additional charges for underpayments. This differential settlement is widespread in industries such as restaurants, car rentals, and food services, and is considered a standardized operating procedure. | Common transactions for hotels, car rentals, and restaurants: – Pre-authorization of USD 100, settlement of USD 120 (USD 20 to be deducted); – Pre-authorization of USD 100, settlement of USD 80 (USD 20 refunded by the system). |
| Exchange rate differential adjustment | If the transaction involves foreign currency, Visa will recalculate the amount using the exchange rate on the settlement date. Due to potential exchange rate fluctuations between the authorization date and the settlement date, settlement adjustments will be necessary. | Overseas spending or foreign currency payments: The authorized exchange rate differs from the exchange rate on the settlement date. |
| Refund Adjustment | When a merchant initiates a refund or cancels the original transaction, the system generates a refund settlement record. | Returns and order cancellations |
| Chargeback Adjustment | Visa intervened and refunded the funds after the user initiated a dispute. | No goods received, duplicate charges, or disputed transactions |
| System error adjustment | Correction of anomalies such as transaction cancellations and duplicate postings caused by errors in the merchant’s or acquiring bank’s system. | Merchant duplicate settlement, system error repair |
| Tips or surcharges | Automatic deduction or refund of difference in settlement adjustment | In some areas, restaurants, hotels, and other businesses charge a tip or service fee at checkout. |
| Partial refund | Automatic deduction or refund of difference in settlement adjustment | Cancel part of the order or not spend the full amount |
| Exchange rate fluctuations | Automatic deduction or refund of difference in settlement adjustment | When foreign currency transactions are used, if the exchange rate differs between the authorization date and the settlement date, the settlement will be adjusted based on the exchange rate on the authorization date. |
III. Billing Instructions
1. Bills will uniformly display terms such as “Settlement Adjustment” without distinguishing between different types;
2. All adjustments are typically completed within 3-14 business days after the transaction date. Please refer to the final amount credited to your account;
3. Due to exchange rate fluctuations, the final amount credited to your account for foreign currency transactions may
vary slightly.
All settlement adjustments are completed automatically, requiring no user confirmation or action. You only need to check the final amount credited to your account to see the transaction results. If you find any obviously abnormal amounts or duplicate credits, please contact official customer service immediately and provide proof of the transaction.
8V official website: https://8V.com and https://8V.com/info
Android Google PlayStore download (not applicable to UK IPs): https://play.google.com/store/apps/details?id=com.royallyborn.v8&hl=en
Android Standalone installation package: https://static.aws-s1.com/app/8v_1_3_0_s.apk
Apple iOS standalone installation package: https://get.8v.com
Samsung GalaxyStore download: https://galaxystore.samsung.com/detail/com.royallyborn.v8