Checks are classified as cash‑in instruments and follow a processing and settlement model that differs significantly from real‑time electronic payments. While checks are still commonly issued and accepted in many markets, their clearing relies on an external clearing house that intermediates communication between the receiving and issuing banks.

Pismo platform’s check‑handling and settlement capabilities combine API‑driven operations with file‑based bulk processing to support flexible and scalable check management. Individual check actions, such as posting, releasing, or canceling, are performed through dedicated APIs, while bulk operations are handled through a bulk‑settlement API endpoint that generates structured output files, and tracked through lifecycle events from creation to completion or failure. The same bulk-settlement endpoint also resolves all pending check operations for a specified division and date, providing consistent batch settlement that aligns with event‑based processing, generated file outputs, and overall operational workflows.

Check posting

You can submit check deposits using the Create check posting endpoint and determine whether the funds are made available immediately or at a future date. This behavior is controlled by the settlement_type field that includes the following options.

Check settlement types

You may also define whether the check amount is deposited in full or only partially, with any remaining value placed on hold until its corresponding settlement date. You can specify check settlement types using the type field of the settlements object. Refer to Create check posting for details.

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About settlements.type

• Only one PENDING is allowed when the settlements.type is END
• Up to three HOLD are allowed when the settlements.type is BEGINNING
• Only one DEPOSIT is allowed when the settlements.type is BEGINNING

Example 1: BEGINNING with check settlement type DEPOSIT

In this example, the client selects BEGINNING as the settlement type, which makes the funds available immediately. The check settlement type DEPOSIT indicates that this is an upfront deposit, and the full amount of $2,000 becomes available right away.

{ 
  "check_id": "c462b2f3-55cc-42b4-ae9a-7614df3e8e72", 
  "check_amount": { 
    "value": 2000, 
    "currency": "USD" 
  }, 
  "description": "Check posting", 
  "settlement_type": "BEGINNING", 
  "business_date": "2025-01-04", 
  "settlements": [ 
    { 
      "type": "DEPOSIT", 
      "tracking_id": "73cc7fa5-79f1-4b85-9e13-124cc58c651f", 
      "settlement_date": "2025-01-04", 
      "amount": 2000 
    } 
  ] 
} 

Example 2: END with check settlement type PENDING

In this case, the client selects END as the settlement type, meaning the funds remain unavailable until the scheduled settlement date—in this case, 2025-01-05. business_date indicates when the transaction is recorded in the account’s balance‑history timeline.

Note that business_date is an optional field. If you do not specify a value, the Pismo platform defaults to current_business_date.

{
  "check_id": "c462b2f3-55cc-42b4-ae9a-7614df3e8e73",
  "check_amount": {
    "value": 2000,
    "currency": "USD"
  },
  "description": "Check posting",
  "settlement_type": "END",
  "business_date": "2025-01-04",
  "settlements": [
    {
      "type": "PENDING",
      "tracking_id": "73cc7fa5-79f1-4b85-9e13-124cc58c651f",
      "settlement_date": "2025-01-05",
      "amount": 2000
    }
  ]
}

Example 3: BEGINNING with a combination of DEPOSIT and HOLD

In this scenario, the client posts the check using the BEGINNING settlement type and chooses to make part of the amount available immediately while placing the remainder on hold. In the example, a DEPOSIT of 100 becomes available on 2025‑01‑05, and three separate HOLD operations release 800, 900, and 200 on 2025‑01‑10, 2025‑01‑20, and 2025‑01‑30, respectively.

{
  "check_id": "c462b2f3-55cc-42b4-ae9a-7614df3e8e72",
  "check_amount": {
    "value": 2000,
    "currency": "USD"
  },
  "description": "Check posting",
  "settlement_type": "BEGINNING",
  "business_date": "2025-01-04",
  "settlements": [
    {
      "type": "DEPOSIT",
      "tracking_id": "73cc7fa5-79f1-4b85-9e13-124cc58c651f",
      "settlement_date": "2025-01-05",
      "amount": 100
    },
    {
      "type": "HOLD",
      "tracking_id": "9d7c898e-dd57-4ab4-bfe3-23a48d56851f",
      "settlement_date": "2025-01-10",
      "amount": 800
    },
    {
      "type": "HOLD",
      "tracking_id": "953109dc-e943-454a-95b6-4b15d2c5b31d",
      "settlement_date": "2025-01-20",
      "amount": 900
    },
    {
      "type": "HOLD",
      "tracking_id": "cd593acd-a056-42a1-aec8-3ae14d427a4d",
      "settlement_date": "2025-01-30",
      "amount": 200
    },
  ]
}

Check release

The check release feature is designed to clear or release uncleared checks. It supports both full and partial releases.

Validation rules

Checks must meet the following rules to be successfully settled. Refer to Release check for details.

Check release examples

Full check settlement

You specify a check_id in the request without a settlement_date, the check is released and the fund is moved from check_holds to available.

{
   "check_id": "c462b2f3-55cc-42b4-ae9a-7614df3e8e72"
}

Specific check settlement

If you want to clear only one of the checks you previously submitted, include both settlement_date and tracking_id in your request so the transaction can be tracked. If you do not provide a tracking_id, the Pismo platform generates one automatically.

{
   "check_id": "c462b2f3-55cc-42b4-ae9a-7614df3e8e72",
   "tracking_id": "1624db2e-ee81-4294-bc5e-c753b2cc5eb9",
   "settlement_date": "2025-06-30"
}

Check cancellation

To cancel checks, you pass a check_id in the Cancel check request.

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Notes

• You can only cancel unsettled or partially settled checks.
• Checks that have been completely settled cannot be canceled.

Checks canceled successfully

This is a sample response payload indicating a successful check cancellation. Note that only check_id is returned.

{
   "check_id": "c462b2f3-55cc-42b4-ae9a-7614df3e8e72"
}

Bank statements balance impacts

Three new balance types are introduced in relation to check posting.

Examples

Checks with settlement_type set to END

When you deposit a check of $1000 and specify settlement_type to END, the following balance impacts occur.

This occurs because the uncleared amount updates both uncleared_funds and ledger_balance. The ledger balance reflects all funds, both cleared and uncleared.

When the check is settled, the available, book, and value‑dated balances increase, while the uncleared funds and uncleared check balance decrease.

Checks with settlement_type set to BEGINNING

When you deposit a $1000 check with settlement_type = BEGINNING and one hold operation of $400 is applied, several balances update immediately. The held portion affects both ledger, held checks balance and held‑funds balances, while the deposit affects available and the total amount of the check impacts the book, value‑dated, and ledger balances. When the operation is later settled, the Pismo platform releases the held amount into the available balance and reverses the temporary hold entries, leaving other balances unchanged.

Before settlement (post checks with a partial hold)

After settlement

For more details, refer to Account balance definitions for transaction banking.

Events

The following events are generated to indicate success/failure status of check settlements. For details, refer to the check posting API.

• Platform authorization created
• Check posting status changed
• Check settlement status changed