決済

• Reading: けっさい
• Romaji: kessai
• Kanji breakdown: 決 (ketsu) — to decide, to settle; 済 (sai) — to complete, to cross, to finish
• Pronunciation: /kes.sai/

Meaning

Settlement of a financial transaction; payment; clearing. The process by which a transaction is completed and funds are transferred between parties.

Used extensively in banking, finance, and commerce to describe the completion of a payment or trade. Distinguished from mere payment (支払い) by its emphasis on the formal clearing and finalisation of a transaction between institutions. Appears frequently in compound terms such as 電子決済 (electronic payment) and 決済システム (settlement system).

Examples

1. 電子決済の普及により、現金を持ち歩く必要がなくなった。 With the spread of electronic payments, there is no longer any need to carry cash.
2. 株式の売買は約定日の翌々日に決済される仕組みになっている。 Stock trades are settled two business days after the execution date.
3. 国際取引では決済通貨の選択が為替リスクに直接影響する。 In international transactions, the choice of settlement currency directly affects foreign exchange risk.

Usage Guide

Context: finance, banking, commerce, e-commerce

Tone: neutral

Origin & History

Compound of 決 (to decide/settle) and 済 (to complete/cross over). The combination conveys the finalisation and completion of a financial matter. Well established in Meiji-era commercial law.

Cultural Context

Era: Meiji onward

Generation: Adults

Social background: Business/Finance