🇦🇺Australia

Settlement Delays Post-Authorization

2 verified sources

Definition

Authorization places temporary holds but settlement occurs later, tying up merchant cash flow.

Key Findings

  • Financial Impact: AUD 1-3 days delay per transaction; 1.3B NPP payments worth AUD 1.5T processed 2022-23 indicate scale
  • Frequency: Daily across all card transactions
  • Root Cause: Batch settlement vs real-time NPP alternatives

Why This Matters

The Pitch: Mail order retailers in Australia delay AUD 500K+ in working capital monthly. Automation via NPP/PayTo real-time payments eliminates this drag.

Affected Stakeholders

Finance Teams, Order Fulfillment

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Verlorene Umsätze durch versäumte oder schlecht bearbeitete Chargeback‑Einsprüche

Quantified: Typical Australian SME reports 0.5–1.5 % of card turnover as chargebacks in card‑not‑present retail; with poor dispute management, 50–80 % of disputable cases are lost by default. For an online retailer with AUD 10 million annual card sales, this equates to ~AUD 50,000–150,000 of chargebacks, of which 25–75 % (AUD 12,500–112,500) is avoidable revenue leakage from missed/weak disputes. Each chargeback also attracts a fee (commonly AUD 20–40 per case, per acquirer pricing), adding several thousand AUD annually.

Hohe Personalkosten durch manuelle Bearbeitung von Chargeback‑Fällen

Quantified: Typical handling time per chargeback case is 30–90 minutes of skilled staff time (finance or disputes analyst) at an effective fully loaded cost of ~AUD 40–60 per hour. For an online retailer receiving 30–50 chargebacks per month, this equates to ~15–75 labour hours/month, or AUD 7,200–54,000 per year in internal processing cost. In peak periods or without tooling, overtime and error rework can push effective cost 20–30 % higher.

Customs Duty Calculation Errors

AUD 50-152 Import Processing Charge (IPC) per declaration over AUD 1,000 + 5% duty overpayment on CIF value (e.g., AUD 500+ on AUD 10,000 shipment)

GST Overpayment on Imports

10% GST on overstated taxable value (e.g., AUD 1,500 overpayment on AUD 15,000 landed cost error)

Missed FTA Duty Concessions

5% duty on full CIF value (e.g., AUD 500 on AUD 10,000 eligible shipment)

AML/CTF Non-Compliance Fines

AUD 1.1M - 22M per breach (based on historical AUSTRAC enforcement)

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