What is net vs gross settlement?

Gross settlement pays each transfer in full, one at a time. Fedwire and most instant rails are gross. Net settlement offsets many obligations and pays only the difference at the end of a window. ACH nets. Your ledger should still record each customer movement in full. The net is how the banks pay each other.

How does netting work?

Bank A owes Bank B 100 and Bank B owes Bank A 80. They settle 20. Customers at both banks still moved 180 of value. If you only booked 20, your wallets are wrong. Book the 100 and the 80. Let the nostro move 20.

Gross vs net for a product

Instant payouts are usually gross: one rail result, one commit. ACH is net at the bank and still per-item in your book. A statement line that is a net total is a recon problem, not a reason to post the net to a customer.

Where does float live?

In the hours or days before the net window, someone holds the difference. That is your clearing pot. Age it. Do not treat the pot as revenue.

How it works with Blnk

Post every customer transfer in full. Reconcile the bank’s net line to the sum of those posts, not to a single customer wallet.

Commit each item when that payment settles. Match the bank’s net line in reconciliation.