Settle Debt Balance

The sender accumulates a debt balance when a credit instrument is used to pay the recipient. At a later point in time the sender can settle the accumulated debt using a credit card, a bank account, or the Amazon Payments account balance. After the settlement debt balance is reduced, the funds are transferred to the recipient's account using the payment instrument specified in the settlement token. When the credit instrument is created, you also get a settlement token as an output from the pipeline. A settlement token is a sender token that is installed on the sender's account which gives the payment method and the payment instrument used to settle the debt balance.

Amazon FPS does not provide an automatic settlement of debt, however, you can explicitly settle the debt using the SettleDebt operation. The SettleDebt operation takes the settlement amount, credit instrument Id and settlement token among other parameters.

The SettleDebt operation

Moves money from the sender's payment instrument specified in the settlement token to the recipient’s account balance. The transaction fee is deducted from the settlement amount and remaining amount is deposited into the recipient's account balance.
Decrements the debt balance by the settlement amount.

Example

If the debt balance is $100, settlement amount is $90, and the Amazon FPS fee is $2.50 then the SettleDebt operation transfers $87.50 into the recipient's account balance and decrements the debt balance by $90. The debt balance is now $10.

Important

	Important
The `SettleDebt` operation cannot be used for transaction with amounts greater than the actual debt balance. If the debt balance is $100, you cannot settle the debt for $110. The `Refund` operation does not support debt settlements.

The SettleDebt operation cannot be used for transaction with amounts greater than the actual debt balance. If the debt balance is $100, you cannot settle the debt for $110.
The Refund operation does not support debt settlements.

A settlement token can use any of the following payment methods:

Credit card
Bank account – Takes about 5 to 7 days to receive funds from a bank account transfer.
Amazon Payments account balance

	Note
	You can use a settlement token to settle a debt multiple times. A maximum settlement limit must be specified on the total value of such settlements that is done using the settlement token. Amazon FPS displays this value to the senders when they set up the credit instrument using the co-branded UI pipeline.