Payment Clearance
/ˈpeɪmənt ˈklɪərəns/
Definitions
- (n.) The process by which a payment transaction is verified, approved, and finalized, ensuring funds are transferred and obligations discharged.
The payment clearance was completed before the invoice due date.
- (n.) The legal confirmation that a payment has been made and accepted, thereby releasing liability for the payer.
Receipt of payment clearance protects the payer from further claims.
Forms
- payment clearance
Related terms
See also
Commentary
In legal drafting, clearly distinguishing payment clearance from mere payment authorization helps prevent disputes over whether obligations are fully discharged.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.