Settlement Failed | Settlement did not complete
This status indicates the transaction did not finalize successfully during settlement or reconciliation processing.
What This Code Means
“Settlement Failed” indicates that a transaction could not complete the final settlement step where funds movement and ledger posting are finalized. Settlement is the stage where a successful authorization or initiation becomes a completed, reconciled transaction. A failure at this stage can occur due to downstream rejections, reconciliation mismatches, network issues, or operational exceptions. This status indicates a late-stage failure, not necessarily an initial decline. It does not guarantee that funds were captured or transferred; it indicates finalization did not succeed under expected rules. The final outcome may involve reversal, return, or correction depending on system design.
Where Users Usually See This Code
- Merchant or bank dashboards showing settlement outcomes
- Transaction histories where a payment moved from processing to settlement failure
- Back-office reconciliation tools tracking failed settlement batches
Why This Code Appears
- Downstream settlement step encountered an operational exception
- Reconciliation files or acknowledgments did not match expected results
- A network or processing system failed during finalization
- Policy or compliance checks triggered a late-stage block
What Typically Happens Next
- The transaction may be marked failed and removed from completion queues
- A reversal or correction process may be initiated to restore consistent balances
- The final status may later update to reversed, returned, or corrected depending on reconciliation outcomes
What This Code Is Not
- It is not the same as “payment declined” (which happens earlier)
- It is not guaranteed to resolve instantly
- It is not an explanation of the exact underlying cause without supporting logs
Troubleshooting Checklist
- □ Review the transaction record for follow-on reversal or adjustment entries
- □ Monitor whether the status changes after reconciliation cycles
- □ Document the timing and transaction identifiers for support escalation
- □ If settlement failures repeat, consult official support channels to confirm whether an incident or configuration issue is affecting settlement
Notes And Edge Cases
Settlement failures can be intermittent and may cluster around batch windows or system incidents. Some platforms temporarily mark items as settlement failed while reconciliation is incomplete, later updating the status when final files arrive. In multi-party payment chains, one system may show settlement failure while another shows processing, creating temporary inconsistency until synchronization completes. The status message typically does not specify whether funds were held, partially moved, or fully reversed.
Related Codes
- 96 CodeSystem malfunction
- ACH Returned CodeACH entry returned
- Payment declined CodePayment not approved
- Verification failed CodeVerification not completed
- ERR-TXN-FAILED CodeTransaction failed
- Payment On Hold CodePayment paused for review
- 91 CodeIssuer unavailable
- ACH Pending CodeACH entry in progress