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hello everyone welcome to the fourth video of payments pipe series in this video we are going to look at clearing and settlement so what are we going to look in this video in this video we will cover what is clearing how is the clearing file generated who are the various parties involved and what is the process we will also look at clearing files of various important schemes and well briefly look at what does settlement mean in the last video we looked at authorizations and what does dual messaging system mean we discussed that in the authorization step the merchant only takes an authorization from the issuer to proceed with the transaction further and at the insurance the funds are actually put on hold now lets look at what does clearing and settlement mean clearing is the step where merchant submits the transaction information to the acquirer who further submits to the scheme scheme receives such clearing files from all the acquirers and sorts out the clearing files and creates an
