Funds in flight vs Settlement finality: what is the difference?
Funds in flight are transfers sent but not yet settled. Settlement finality is the moment a transfer becomes irrevocable. A transfer stops being in flight when it reaches finality and is credited at the destination.
| Funds in flight | Settlement finality | |
|---|---|---|
| In one line | Funds in flight means money a payment company has sent but that has not yet settled or been credited at the destination. It is no longer available at the source and not yet usable at the receiving end. | Settlement finality is the point at which a transfer of funds becomes irrevocable and unconditional. After that point it cannot be unwound, even if the sender becomes insolvent. |
| Read more | Funds in flight | Settlement finality |
How they work together
Counting money as usable before finality is how corridors get overdrawn. Keeping it in flight until it settles keeps the position honest.
Where Polynopsis fits
Polynopsis tracks every transfer from send to settle, matched from the transfer confirmations in the team's inbox, so money in flight stays visible until it lands.
Polynopsis keeps a transfer in flight until it has settled at the destination, so the position never counts money as usable before it is.
Frequently asked questions
What is the difference between funds in flight and settlement finality?
Funds in flight are transfers sent but not yet settled. Settlement finality is the moment a transfer becomes irrevocable. A transfer stops being in flight when it reaches finality and is credited at the destination.
What is Funds in flight?
Funds in flight means money a payment company has sent but that has not yet settled or been credited at the destination. It is no longer available at the source and not yet usable at the receiving end.
What is Settlement finality?
Settlement finality is the point at which a transfer of funds becomes irrevocable and unconditional. After that point it cannot be unwound, even if the sender becomes insolvent.
Sources
- CSBS Money Transmission Modernization Act (model law text) · Conference of State Bank Supervisors (hosted by NMLS)
- International Money Express, Inc. Form 10-K for fiscal year 2024 · U.S. Securities and Exchange Commission (EDGAR)
- What is cash float? · Modern Treasury
- CPMI glossary · Committee on Payments and Market Infrastructures, Bank for International Settlements
- Fedwire Funds Services · Board of Governors of the Federal Reserve System
- Banks: settlement finality in payment and securities settlement systems (Directive 98/26/EC summary) · European Parliament Legislative Observatory
- Remitly Global, Inc. Form 10-K for fiscal year 2024 · U.S. Securities and Exchange Commission (EDGAR)
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
Why it is called Polynopsis · About Polynopsis · Glossary · Corridor runway calculator