In the previous article, we traced the timeline of a card transaction and saw how “instant” payments actually unfold over days. Each step—authorization, capture, clearing, posting, settlement—runs on its own clock, which can possibly create mismatches that ripple through cash flow and reporting.

This is where ledger design becomes more than just a technical curiosity or an accountant’s wishlist. If your ledger can’t represent when promises were made versus when money actually arrives, it can throw off things like cashflow reports and reconciliations. And that can mean that your team spends more time explaining discrepancies than driving the business forward.

Here, we take a deeper dive into the concept behind a solution to these timing issues: bi-temporality. Bi-termporality is simply the ability to track financial events in more than one dimension of time, and it can provide just the right level of detail to avoid confusions about where the organizations money actually is at any point in time.

Bi-Temporality: Representing Time in More than One Way

As we discussed previously, delays can happen at several places along the timeline, though they usually happen at either the capture phase or the clearing and settlement phase.

For example, suppose a capture is sent and just misses the scheme’s cutoff. That capture might not settle until two days later, even if the cutoff was missed by mere seconds.

And even once the transaction is captured, the acquirer doesn’t immediately send cash. Captures are usually batched and then forwarded through the scheme. Those batches are governed by cutoff times, which might occur once a day or even in multiple windows during the day. If a cutoff is missed, even by an hour, what looked like “today’s money” can become “money two days later” (D+2) as well.

When there are noticeable gaps like this in the timeline, your organizations ledger needs some way of making this explicit. An easy way to do this is to have different fields for request time—that is, when an event is entered into the system—and transaction time, when the event becomes effective. Without both, financials can blur together, cash flow statements become inaccurate, and reconciliation now requires extra detective work.

With both times recorded, you now have bi-temporality in your ledger. Bi-temporality lets you query the ledger as it looks at any given point: What promises are on the books, what funds are currently settled, and which obligations are still “in flight.” This in turn makes transactions easier to track, because the ledger can represent both the original instruction and the moment money actually lands in an account.

For example, bi-temporality enables:

• Tracking of a chargeback with both the original authorization transaction time and the later reversal registered later but applying the same time as the transaction time.
• Recording a cross-border capture at the time of request, then recognizing the (FX-adjusted if applicable) settlement days later.
• Distinguish an “on us” transaction (issuer and acquirer at the same bank, settling instantly) from one that drags across multiple scheme cutoffs.

So, if you are a merchant (or an enterprise company owning several merchants), you should never expect card transactions to magically make your money appear instantaneously. But that shouldn’t be needed anyway, so long as you have an accurate snapshot of where your payments are in the payment timeline. A ledger built with bi-temporality gives you clarity across shifting timelines, and so confidence in your available balances.

This is a Reason Why Choice of Ledger Software Matters

The anatomy of a card transaction is not just a technical curiosity. The timeline here dictates when promises become money in the bank, literally. Each step along that path has the potential to introduce differences in reporting, liquidity, and risk. And without the right tools, those differences pile up as mismatches in your ledger.

With a bi-temporal ledger, those mismatches don’t have to be mysteries. You can see exactly what was promised, when it was fulfilled, and how that affects your balances at any moment in time. That clarity is what keeps cash planning accurate, compliance straightforward, and customer trust intact.